CONTENTS Page

About this report...... 2 FIRST INNINGS – President’s message...... 4 – Highlights and challenges...... 7 – Salient features...... 8 SECOND INNINGS – Chief Executive’s report...... 10 – Strategic overview...... 15 Cricket South Africa’s (CSA’s) vision is to make cricket a truly national sport of winners. This has two – Chief Financial Officer’s review...... 19 OUR elements to it: • To ensure that cricket is supported by the majority of South Africans and available to all who want to play it. – Summary financial statements...... 22 VISION • To pursue excellence at all levels of the game. – Audit and Risk Committee report...... 30 Sessions – Who we are...... 32 – Business model and value creation...... 34 As the governing body of cricket in the country, CSA will be led by: – Financial capital...... 41 • Promoting and protecting the game and its unique spirit in the context of a democratic South Africa. – Human capital...... 44 • Basing our activities on fairness, which includes inclusivity and non-discrimination. – Manufactured capital...... 60 • Accepting South Africa’s diversity as a strength. – Intellectual capital...... 62 OUR • Delivering outstanding, memorable events. – Social and relationship capital...... 65 • Providing excellent service to its Members and stakeholders. – Natural capital...... 69 MISSION • Optimising commercial rights and properties on behalf of its Members. • Implementing good governance based on the King code of governance, and ensuring diligence, – Transparency and accountability...... 70 honesty and transparency in all our activities. – Members’ Council...... 70 • Actively marketing cricket from mini-cricket to the Proteas. – Board of Directors ...... 71 – Executive Committee...... 74 – Corporate governance overview...... 75 – Remuneration overview...... 81 – Social and Ethics Committee report...... 86 CSA is committed to living by the following values: – CSA representation...... 89 • Honesty and integrity – we tell the truth and act consistently on a set of ethical principles. OUR • Professionalism and diligence – we strive to perform at the highest level of excellence. • Mutual respect and fairness – we acknowledge the rights and dignity of others and treat those ABBREVIATIONS...... 90 VALUES we engage with equitably. FORWARD-LOOKING STATEMENTS...... 90

CONTACT DETAILS...... 90

Legend Strategic objectives Six Capitals Transformation is about the sustainability of financial revenue, intellectual capital, human capital and talent in the work place and on the field, thereby ensuring CSA’s sustainability, 6 Substantially Achieved Excellence Financial TRANSFORMATION relevance and competitive edge. CSA firmly believes in systematic transformation from 4 Substantial Progress Development Human grassroots as an entry point and throughout its cricketing structures. Such transformation Limited progress/Objective not yet achieved Sustainability Manufactured STATEMENT provides improved access, fair opportunity and support for all South Africans, within and beyond the boundaries of the playing field. H High Risk Transformation Intellectual M Medium Risk Brand promotion and marketing Social and relationship L Low Risk Natural

1 About Scope and boundary STAKEHOLDERS ASSURANCE We are pleased to present our 2017/18 integrated CSA is passionate about its stakeholder engagement The summary financial statements have been this report to our stakeholders so they can better and appreciates that it has a diverse range of prepared from CSA’s audited annual financial understand CSA and continue to unite in building stakeholders who require interaction through statements in accordance with International Financial this nation through sport. In preparing this report, various mediums. This report is one method of Reporting Standards (IFRS), and in the manner report we have been guided by the International Integrated engaging with our stakeholders. As we continue our required by the Companies Act 71 of 2008 of South Reporting Council’s (IIRC) Framework. CSA integrated reporting journey, we welcome feedback Africa. The full set of annual financial statements continues to embrace, as far as possible, the King from stakeholders on this report, including how we is available at CSA’s offices. The external auditors, Code of Governance Principles. This report covers reported our strategic objectives, material issues and PricewaterhouseCoopers Inc, expressed an the financial period 1 May 2017 to 30 April 2018, performance. Please contact us at [email protected] unmodified opinion for the year under review, which however, events subsequent to year end and to the with your feedback. is included in this integrated report on page 22. The date of this report are included. In communicating table below shows the aspects that were assured as our business model, we have considered the This integrated report can be accessed on our well as the external assurance providers. six capitals: financial capital, human capital, website, www.cricket.co.za. If you require a printed manufactured capital, intellectual capital, social copy of the report please contact Shahnaaz Pailwan Based on the review and recommendation of the and relationship capital, and natural capital. Our at [email protected] Audit and Risk Committee, the Board has approved performance overview (see the section, “Sessions”) the annual financial statements. is structured according to these six capitals. This illustrates our ability to use these capitals through our business activities and create value over time Assurance Reports considered by the CSA Board Committees: for our stakeholders. Unlike previous reports, we Aspect Requirements Status Assurance provider have included natural capital here because of South Fair presentation in all material aspects of annual financial statements External audit report Assured PricewaterhouseCoopers Inc Africa’s current water challenges. Transformation B-BBEE compliance BEE verification report Assured Grant Thornton Material issues

CSA’s material issues are those significant issues that, if not effectively managed, could fundamentally STATEMENT FROM THE impact CSA’s ability to create and sustain value. In determining CSA’s material issues, the Executive BOARD OF DIRECTORS STAKEHOLDERS STRATEGY Management (Exco) has deliberated the material issues from the prior year and determined that they The Board acknowledges its responsibility for remain relevant for the current reporting period and the integrity of the integrated report, applying its are aligned to the organisation’s strategic objectives collective mind to the report’s preparation and CSA and risks. presentation. The Board is of the opinion that this VALUE CREATION INTEGRATED RISKS integrated report addresses all material issues and THINKING CSA’s material issues fairly presents the integrated performance of CSA. • Financial sustainability • Talent identification, retention and development MATERIAL ISSUES OPPORTUNITIES • Transformation • Brand and reputation CHRIS NENZANI NORMAN ARENDSE, SC • Transparency and accountability President Lead Independent Director

8 September 2018 8 September 2018

2 3 FINANCIAL PERFORMANCE executive levels. This discussion also challenged I was impressed by the spirit of unity FIRST the misconception that cricket is a game for men and stability that will enable us to take The company achieved a consolidated net profit only, showing that developing women players can transformation on an ever-upward journey. of R350 million (2016/17: R159 million loss), lead to additional opportunities on and off the field. INNINGS after taking into account the T20 Global League CSA has made tremendous strides over the past Transformation in society is a national expenditure of R192 million. The organisation’s two years in increasing the profile of women’s cricket imperative. It is a societal, constitutional, cash position remains favourable at R627 million and ensuring equality with critical motivators like (2016/17: R740 million). compensation and high-performance training; this is moral, ethical and sustainability issue. 04 President’s message elaborated on in the Chief Executive’s report. Overall, Further comment on CSA’s financial performance I was impressed by the spirit of unity and stability Chris Nenzani, CSA President is detailed in the Chief Financial Officer’s review that will enable us to take transformation on an ever- 07 Highlights and detailed on page 19. upward journey. challenges PRESIDENT’S MESSAGE TRANSFORMATION PERFORMANCE CORPORATE GOVERNANCE 08 Salient features Transformation is much broader than just a The Board remains committed to best corporate OVERVIEW cricket field: it encompasses our governance, practices. When I was appointed as CSA’s administration, culture and diversity, fans and President in February 2013, the organisation’s I am pleased to present my message for the supplier base. CSA has made noteworthy progress credibility was at an all-time low and relations 2017/18 financial year, which was a momentous in transformation over the past four years, though with the International Cricket Council (ICC) were period for CSA with some notable highlights and the Board appreciates there is still much to achieve. strained. Today, CSA’s governing body has made challenges. This financial period also marks the end The Board and management remain focused on great progress in embracing the King Code’s of CSA’s four-year financial planning cycle, making continually improving CSA’s transformation progress governance principles, including some critical it important to reflect on our current financial period on all levels. changes in shaping a better governance model, performance and the performance over the past such as appointing independent non-executive four years. At our 2018 Transformation Indaba, we reflected on directors who brought specialised expertise our achievements since the 2013 Transformation and a wealth of experience outside of cricket to Following the 2017 Annual General Meeting (AGM) Indaba and determined what still needs to be done encourage healthy Board debates. The Board is and robust Board debates and discussions, it was in our transformation journey. One of the high points also more effective and has embraced the need decided to postpone the T20 Global League to of the Indaba was the launch of the second volume for change following recommendations made continue the process of securing a broadcaster, representing the authentic history of cricket in South by the 2012 Nicholson Report. Going forward, headline sponsor and revise the business model. Africa. This volume, entitled ‘Divided Country’, further improvements to CSA’s Memorandum of I was encouraged by CSA’s resilience during this covers the period from the outbreak of World War I Incorporation (MoI) will include revising director tenuous time and its ability to carry on with business in 1914 to 1960, and deals with the fragmentation rotations and tenure and improving gender as usual. This testifies to CSA’s optimistic and of South African cricket into different controlling balance. transparent culture and the Board’s strength in bodies. making tough decisions and communicating in Safeguarding cricket’s interests is of paramount a transparent, factual manner. CSA continues At the Indaba, we also engaged with stakeholders importance and a role that the Board takes very to pursue opportunities to launch the new T20 such as the South African Sports Confederation seriously. CSA appreciates that it cannot operate league but we will not put the well being of the and Olympic Committee (SASCOC), South Africa’s alone in extending cricket access to all talented game at risk. Sports and Recreation Ministry (SRSA) and local South Africans and maintaining cricket facilities. government, all of whom are instrumental in The need for continued engagement with certain The Board and Exco continue to work achieving a successful transformation outcome. stakeholders, including Members, SASCOC, SRSA together to drive and implement CSA’s The specific resolutions from 2013 and the new and the Department of Basic Education (DBE), strategic objectives. ones adopted at the Indaba are discussed on remains at the forefront of the Board’s agenda. pages 55 and 56, but one particularly inspiring Importantly, relations with our sponsors remain solid. discussion was ‘Women in Leadership’, which highlighted the importance of increasing the I extend my thanks to the outgoing Board of number of women from grassroots level on the Directors – Norman Arendse SC, Adv Vusi Pikoli, cricket ground through to presidential, board and Faeez Jaffar and Rihan Richards – who provided

4 5 instrumental guidance throughout their tenure. On best practices, increasing access to the game, HIGHLIGHTS AND CHALLENGES behalf of the Board, I wish them everything of the and excelling on and off the field. This will enable best going forward, when they retire at the 2018 us to achieve our vision of making cricket a truly HIGHLIGHTS CHALLENGES AGM. national sport of winners and delivering outstanding, memorable events. • Recorded revenue of R1,5 billion, compared to • Securing a Future Tours Programme (FTP) with FAREWELL R675 million in the previous year adequate revenue generating content CHANGE IN CHIEF EXECUTIVE • Continued excellent performance by Proteas • Improving playing opportunities at all cricket I am always saddened to say farewell to individuals men’s and women’s teams, with notable individual levels, building depth in the area of black who have dedicated themselves to a specific I welcome Thabang Moroe’s official appointment as international recognition African batsmen whilst retaining players cause. It was with great shock that we learnt of Chief Executive, effective 17 July 2018, following his • Invested into cricket stadiums and grounds • Lack of adequate cricket facilities and access the untimely passing of Pieter Roux, President of role as Acting Chief Executive for almost a year. to better meet the fans, players and service to cricket in disadvantaged areas at various the Northerns Cricket Union Umpires Association. providers needs levels Pieter contributed tremendously to the NCU Umpires APPRECIATION • First ever U17 Standard Bank RPC National Week Association and will be greatly missed. • A highly successful National Transformation In closing, I extend my thanks and gratitude to the Indaba Mama Winnie Madikizela-Mandela, a South African Member Presidents, and the Board of Directors. icon, passed away following an ephemeral illness. Thanks also extends to Exco who drove CSA’s Mama Winnie devoted her life to the struggle, performance and strategy and achieved excellent shaping the lives of numerous political heroines results during the year under review. and crafting a political legacy that carries on today through the many who admired her. She was pivotal I extend my appreciation to Haroon Lorgat, who in the fight for equality and her spirit of resilience will made a valuable contribution to CSA’s success be sorely missed. As a political stalwart, and in the during his tenure. Moreover, thank you to our staff values she instilled in her family, she created a legacy and our national teams, commercial partners and of greatness in African leadership that still resonates fans, and the Minister and Deputy Minister of Sport today. and Recreation. Also, thanks to all our volunteers who work tirelessly to make our vision a reality. On behalf of CSA, I extend deepest sympathies to the family, friends and colleagues of these inspiring individuals. LOOKING AHEAD CHRIS NENZANI We will continue with clear directives to achieve President our strategic objectives, which means improving transformation outcomes, enhancing governance 8 September 2018

6 7 SALIENT FEATURES

Key performance indicators Unit 2017/18 Target Progress 2016/17 Key performance indicators Unit 2017/18 Target Progress 2016/17 Financial • Franchise cricket: black players per team2 No. 6 6 6 6 • Total revenue R’ m 1 526 1 500 6 675 • SA ”A” Programme: • Cricket development expenditure R’000 341 Note 1 6 301 – Generic black players % 58 56 6 62 Cricket participation, support and infrastructure – Black African players % 32 30 6 29 • KFC Mini-Cricket participants No. 123 337 Note 1 6 119 271 • Coach education: black African coaches within CSA + Member structures % 80 52 6 50 • Players attending Provincial Academies No. 114 Note 1 6 78 Governance and transformation • Focus schools supported by CSA No. 30 32 6 16 • EPG score3 % 62 50 6 52 • Coaches No. 9 568 Note 1 6 2 629 • BEE score Level Level 4 Level 4 6 Level 4 • Hubs and RPCs1 No. 67 67 6 62 • Quality of opportunity High performance – Franchise % 100 80 6 n/a • National team: – Provincial % 61 80 4 n/a • Generic black representation % 52.1 54.0 4 59 • CSA Board black representation • Black African representation % 19.8 20.0 4 21 – Independent % 80 80 6 80 • National team: black African batsmen No. 2 Note 1 4 2 – Non-independent4 % 100 80 6 100 • Youth cricket (schools): black African players per provincial team No. 5 3 4 5 – Women % 17 25 4 17 • High school cricket • CSA Exco representation – Teams No. 2 296 2 313 6 n/a – Black % 91 60 6 91 – Coaches (2016 was the total no. of coaches in the country) No. 3 118 Note 1 6 4 820 – Women % 18 25 4 18 – Facilities No. 993 634 6 959 • CSA staff demographic – High schools No. 928 1 059 6 1 052 – Black African % 68 54 4 57 • Primary schools cricket (excluding KFC Schools) – White % 20 28 4 25 – Teams No. 4 225 Note 1 4 2 154 – Coloured and Indian % 12 18 4 18 – Coaches (2016 was the total no. of coaches in the country) No. 3 139 Note 1 4 4 820 • Geopolitical alignment (nine provinces) No. 9 aligned 9 aligned 6 5 aligned – Facilities No. 1 279 1 397 4 1 269 1 – Primary schools No. 1 637 1 617 4 1 619 Hubs and RPCs are positioned when and where needed. 2 Average number. • SA U/19: black African players within SA U/19 % 35 33 4 33 3 CSA is scored by the EPG a year in arrears. The 2017/18 score is an internal conservative estimate. 4 • Club cricket: Elected through a democratic process. Note 1: No targets. – Black African (Community T20 Cup) No. 3 2 2 6 n/a: Not available. – Black African (Club Champs) No. 5 2 6 4 – Players No. 41 967 26 476 6 37 209 – Coaches (2016 was the total no. of coaches in the country) No. 2 006 Note 1 6 4 820 – Facilities No. 711 715 6 546 – Clubs No. 845 843 6 831

8 9 CHIEF EXECUTIVE’S REPORT d) enhanced engagement with players; and diversity. I must highlight the Proteas men’s first SECOND e) grow player population as well as ensure ever post-isolation home Test Series win over wellness and equity for all professional players. Australia and the team finishing at the No. 2 and OVERVIEW No. 4 spot for Test and ODI formats respectively. INNINGS It was heartening to note the good spirit in which Additionally, the Proteas women’s team closed- I am honoured to present my report of the 2017/18 these negotiations were concluded, and CSA in on their first ever ICC semi-final. Both teams financial year, which also marks the end of a four- committed to maintaining its revenue share model also had individual players recognised in world year financial cycle for CSA. The year started with with all players. rankings. 10 Chief Executive’s report a clear path and, despite a few stumbling blocks, CSA concluded the financial year in a strong financial ORGANISATIONAL DESIGN PROJECT (OD) Our domestic cricket remains blessed with great position and with a positive outlook. talent, and I must thank and acknowledge our 15 Strategic overview It is important to ensure that our organisational players, umpires, ground staff and scorers, who Following the postponement of the T20 Global structure adapts to change over time. With the all shone in pursuing excellence at all levels of the 19 Chief Financial Officer’s League in October 2017, it was reassuring to note cricket administration evolving over the past five game. how CSA was able to rebound and bring forward years, the Board requested that Exco conduct review the T20 RAM SLAM competition during the period an OD review to determine whether the current We finalised the Proteas men’s squad of 18 to be originally allocated to the T20 Global League. The structure and staff were still fit for purpose to deliver awarded national contracts for the 2018/19 season. 22 Summary financial participation of our Proteas in the competition on the CSA strategy. The implementation of the The contracts cover the bilateral tours away to Sri statements resulted in increased television viewership and OD recommendations is expected to enable our Lanka and Australia, and the home series against fan attendance at the respective venues. CSA organisation to be more agile, adaptable and should Zimbabwe, Pakistan and Sri Lanka, finishing with endeavours to launch the new T20 league, without assist with reinforcing staff roles and responsibilities the 2019 edition of the ICC World Cup to be played 30 Audit and Risk compromising the core business of CSA. as well as succession and development planning. in England and Wales. First-time national contracts Committee report An important outcome of this review resulted in have been awarded to Aiden Markram and Lungi After the T20 Global League was postponed, we the creation of various new management positions Ngidi, both of whom made their international debuts focused on restoring stakeholder confidence. within the organisation to increase capacity during the past year. We are pleased to report that Members and requirements. One of the key recommendations sponsors continue to remain confident in CSA’s of the OD was the creation of the Chief Operating CSA believes in providing equal opportunities for ability to provide excellent service and deliver on Officer and Director of SA Cricket roles. At the time women in cricket and we strive to promote equal our strategy, even in challenging times. The fact of this report the Chief Financial Officer (Naasei pay in the cricket system. During the financial that we retained our sponsors, during this time, Appiah) has been elevated to the position of Acting year, CSA awarded 14 Proteas women’s squad is a testament to the organisation’s leadership. Chief Operating Officer to oversee the broad members with national contracts for the 2018/19 In addition, the sponsorship revenue over the operational structure. Ziyanda Nkuta, previously season. In addition, we reviewed the women’s four-year financial planning cycle increased, an Finance Manager has been appointed as Acting remuneration model to ensure parity with the incredible achievement given the challenging Chief Financial Officer. men’s remuneration. As a result, the women’s economic climate. CSA also strengthened strategic remuneration was increased significantly and relations with key ICC Members (Australia, England STRATEGIC PERFORMANCE match fees were introduced. Although this does and India), which led to sharing best practice and not result in the same rand amount paid to women learnings. To remain relevant and deliver on CSA’s five strategic as men (as the men play more games) it is a further pillars, our strategy continues to evolve, ensuring step in aligning the men’s and women’s cricket CSA and SACA finalised the MoU 18 negotiations for we deliver excellence, development, sustainability, system. Promoting women’s cricket remains a both men’s and for the first time for women’s cricket, transformation and brand promotion. focus area. and reached an agreement. The key objective for CSA in the MoU 18 negotiations with SACA was EXCELLENCE We were saddened by the retirement of AB de Villiers to: and Morne Morkel from international cricket, but a) formally regulate the relationship between Our sporting talent showed across all levels of we respect their decisions and wish them the best CSA (employer)and SACA (trade union); the game this cricket season. Both our Proteas for the future. They will be missed greatly and we b) recommend enhancements from men’s and women’s teams continue to perform sincerely thank them for their contributions to the MOU14; at admirable levels and are among the best National team. We remain confident in our current c) achieve an optimized fixed guaranteed in the world. I find it particularly encouraging pipeline’s ability to produce other outstanding and remuneration for all players; that all our national teams reflect our country’s inspirational individuals.

10 11 DEVELOPMENT groomed through development and upskilling which resulted in an expected annual performance interventions offered at high-performance centres with consolidated net profits of R350 million Cricket development helps us realise our vision of and through a player performance plan. CSA has (2016/17: R159 million loss) after absorbing the T20 making the game available to all South Africans who commissioned a review to determine ways of Global League expenditure of R192 million. want to play it. CSA invested R341 million in the working more closely with schools to foster talented sport (2016/17: R301 million), the majority of which players. We have also implemented a demographic CSA has achieved excellent financial growth, was invested in youth cricket, club cricket and the representation condition to all schools participating particularly sponsorship revenue over the past Hubs and Standard Bank RPC Programme. We are in the Coca-Cola cricket competition to ensure that four-year financial cycle, in a difficult climate proud of the strength of our various development all South Africans are afforded an opportunity to play where companies are looking to contain costs programmes, which play a vital part in our talent in the competition. and generally sponsorship budgets are the first to identification pipeline. be cut. Although CSA’s financial year profit is an To maintain excellence at all levels throughout the achievement, this growth trajectory will be difficult to The Hubs and RPCs stationed across South Africa cricket pipeline and in cricket competitions locally and sustain going forward. It becomes, therefore, even continue to produce budding young talent. In the internationally, it is imperative that cricket facilities more important that CSA focuses on expanding the year under review, there were five new Hubs and (stadiums, pitches, grounds, equipment) are well FTP and sourcing alternative revenue streams to RPCs, and 243 players participated in various maintained and meet required standards during the balance the preservation of its reserves and continue national tournaments, 83% up on the comparative cricket season. CSA invested about R350 million in cricket development programmes. Exco will focus period (133 players in 2016/17). These player stadium upgrades in 2016/17. Improvements included on innovative ways to identify revenue generating success stories would not have been possible cutting-edge artificial lighting systems, advanced opportunities and further cost efficiencies. without the hardworking coaches and volunteers sports field technology and LED scoreboards, and at these centres. During the financial year, over revamping changerooms and media centres to create The ICC is developing a global cricket strategy and above the coach and umpire’s acceleration world-class stadiums that comply with the Safety At to address global challenges, one of which is the programmes, CSA implemented accredited courses Sports & Recreational Events Act (SASREA) 2010 as high cost of game administration. Some exciting to address the development and quality of Elite amended, which requires venues to obtain various innovations that are being explored at a global level Coaches. Furthermore, umpire coaches were certificates of compliance relating to structural include synthetic fields and pitches, and methods introduced to ensure that identifying, training and compliance, electrical standards, health and safety, of making cricket equipment more affordable, developing match officials is addressed effectively disaster management, and more. Three local particularly in underdeveloped countries. within Member structures. CSA welcomed the new municipalities – Nelson Mandela Bay Municipality National Coach, Ottis Gibson, who has achieved in Port Elizabeth, Drakenstein Municipality in Paarl Further comment on CSA’s financial performance great success with the national team to date. and Buffalo City in East London – have contributed is detailed in the Chief Financial Officer’s review on considerably towards the stadium refurbishment and page 19. The KFC Mini-Cricket Programme continues to upgrade works currently underway. As part of CSA’s provide a launchpad for our young cricketers to live commitment to reducing resource consumption, LED TRANSFORMATION their dreams. Schools cricket was identified as a lighting has been installed at three stadiums, with challenge in the EPG report, as insufficient talent was other stadiums to follow suit. With South Africa’s We achieved progress in our transformation identified and nurtured at schools’ level, especially in water shortage, particularly in the Western and journey on and off the field. CSA remained at an disadvantaged communities. It was pleasing to note Eastern Cape, CSA embarked on a borehole project externally verified Level 4 B-BBEE rating. It was the MoI, signed by the SRSA and the DBE, to improve to reduce water consumption at cricket grounds. moving to experience the positive energy at CSA’s school sports. Both stakeholders play a valuable Boreholes have been installed at Newlands in Cape Transformation Indaba and we look forward to role in uplifting sport in South Africa and ensuring Town and will extend to stadiums in the townships. tackling the resolutions and challenges identified the Schools Sport Programme is aligned with the head on. Please refer to the Human Capital section government’s National Sport and Recreation Plan. SUSTAINABILITY on page 55 for further details on the Transformation Indaba. The development of black African batsmen remains To realise financial sustainability, we need to operate a challenge. Although there has been some optimally, particularly in this tough economic Improving access to disabled players remains a improvement in individual performances, overall climate. Added to this economic pressure is CSA’s challenge. For the first time since the introduction performance is unsatisfactory. There is room for fluctuating revenue model that is largely dependent of the Ancillary Membership category, CSA improvement in our cricket development system to on inbound tours to generate broadcasting rights Members Council at its 2016/17 AGM approved identify talent much earlier in the pipeline. This would and ICC distributions. This financial year marks the the applications of five Ancillary Members which ensure that talented individuals are appropriately end of our four-year financial and budget cycle, included three disabled player associations.

12 13 The Proteas men’s team achieved 19.8% against a APPRECIATION STRATEGIC OVERVIEW Seven risk areas target of 20% for black African players, but fell short Cricket – attaining representative world-class teams. in black representation, achieving 52.1% against a I extend my sincere appreciation to the CSA A clearly defined strategy enables CSA to achieve target of 54%. Board of Directors and Member Presidents, the its vision and mission, manage risks and identify Governance, organisational culture and cohesion – adhering to Chief Executives and their staff, our broadcast, opportunities. During the year under review we governance structures and internal controls. CSA continues to monitor its progress against the media and commercial partners, and all our fans demonstrated good progress against our strategic Financial sustainability – ensuring adequate revenue to fund EPG Transformation Targets and it was pleasing to who continue to support us. I am also heartened objectives, creating value across the commercial and CSA operations and programmes. note that we achieved a score of 62% in 2017/18, by the Board’s decision to appoint me as Chief cricketing activities of the organisation as discussed Operations – ensuring adequate capacity, capability and compared to 52% in 2016/17. Schools’ cricket was Executive, effective 17 July 2018, following my on page 34. infrastructure to deliver on CSA operations, programmes and identified as a challenge in the latest EPG report. role as acting Chief Executive for about a year. events. CSA’s review of its schools’ cricket systems is Lastly, to Exco and staff, thank you for all your Our five strategic pillars Strategic pillars Brand and communications – continuously striving for a world- ongoing and outcomes will be reported on in the new dedication and commitment over this challenging shown alongside remain class corporate brand and effective communication. 2018/19 financial reporting period. CSA adopted its year and I look forward to an exciting year ahead, relevant and are driven by • Excellence Transformation – responding in an agile way to the ever- geopolitically aligned MoI in September 2017 and the on and off the field. our aspiration to be the most • Development process of alignment has been completed. successful and sustainable changing socioeconomic environment to ensure sustainability • Sustainability and relevance. OUTLOOK organisation in the cricket BRAND PROMOTION playing world. We continue to • Transformation Government and stakeholder relations – aligning with all tiers of government and effective stakeholder dialogue. • Identifying additional and alternative revenue measure our progress against • Brand promotion Our sponsors are instrumental in promoting the streams. these strategic goals, based CSA brand. We welcomed the exciting Standard • Profiling the women’s cricket team for its own on specific performance measures which include: Bank RPC U17 National Week initiative that aims to commercial rights opportunities. During the year under review, we achieved solid transform cricket by developing and nurturing the • Implementation of the Organisational Design. • Corporate scorecard – used to monitor progress progress in maintaining sustainability along budding cricket potential in South Africa. • Increasing fan attendance and viewership. and evaluate companywide performance. our strategic path, which included operational • Implementing the 2018 Transformation Indaba • Budget versus actual revenue and costs – aims effectiveness, efficiencies, governance and We noted a tremendous increase in the profile of Resolutions. to manage our finances to ensure that we meet revenue generation. As we move further along our women’s cricket. Public interest in the men’s Proteas business objectives optimally and efficiently. strategic journey, we are well positioned to move team also improved due to their good performance into a consolidation and then growth phase, as we and team player diversity. The diversity of our fan MATERIAL ISSUES distinguish ourselves and build the CSA brand. Some demographics and fan match attendances also of the key initiatives that were undertaken included increased, since fans identify with their cricket CSA defines a material issue as a matter that if not hosting CSA’s Transformation Indaba to reflect heroes. In addition, 18 million TV viewers were effectively managed, could fundamentally impact on transformation progress, significant stadium recorded in the 2017/18 cricket season, second only THABANG MOROE CSA’s ability to create value going forward over the upgrades, initiating a Schools’ Cricket System to soccer. As testament to being an industry leader Chief Executive short, medium or long term. In determining CSA’s Review, revising the High-Performance Strategy, in the process of a holistic programme, CSA received material issues, Exco reviewed and discussed the reviewing CSA and Members MoIs, securing 16 Sports Industry Award nominations. 8 September 2018 prior year’s material issues, while also considering broadcasting rights for the new T20 League and the risk issues described on page 16 and the completing a Facilities Plan to operationalise the connection to strategic objectives. Following this DBE/SRSA/CSA agreement. Key initiatives currently review, Exco concluded that the material issues were underway include reviews of the current Operational still relevant for the current reporting period. These Models, finalising geopolitical alignment process material issues are: across all Members and concluding the Schools’ Cricket System Review. • Financial sustainability. • Talent identification, retention and development. • Transformation. • Brand and marketing. • Good governance.

14 15 CSA CORPORATE RISK DASHBOARD AND SCORECARD Risk Progress Strategic Risk Description rating Mitigating actions in 2017/18 objective The Board bears overall responsibility for CSA’s CSA’s Exco held a few workshops during the Governance, organisational structure and cohesion risk management and without abdicating its financial year under review to update and reassess Ongoing training and development to keep responsibilities the Board is assisted by the Audit its risks to ensure alignment with its strategic Non-compliance with relevant abreast of changes 4 Policies and and Risk Committee in discharging its duties. objectives and internal and external factors laws and regulations and internal M procedures Effectively managing our risks means we: impacting the cricket administration. These risks are controls, policies and procedures Ongoing compliance monitoring 4 monitored across seven broad risk areas: Cricket, • Assess, measure and mitigate risks that threaten governance, organisational culture and cohesion, Annual audits conducted by compliance on SASREA Act Non-adherence to the Act H the pursuit of our strategic objectives. financial sustainability, operational, transformation, submission of valid certification 4 • Identify opportunities that these risks might brand and communications, and government and Regular engagement with Members on present. stakeholder relations. Progress is measured against Governance 6 Lack of improvement in governance and compliance best practice the previous quarterly assessments. at Member M governance These risks are monitored and their progress and level Governance compliance tool (Operational Model) 6 ratings are presented by Exco to all CSA Board in place to measure and reward compliance committees throughout the financial year. Non-compliance with National Aligning CSA MoI Geopolitical 4 Sports Recreation Plan and SASCOC M Risk Progress Strategic alignment requirements Aligning Members’ MoI 4 Risk Description rating Mitigating actions in 2017/18 objective Cricket Financial sustainability Ineffective/limited competition Develop a facilities plan to be presented to local Strengthen strategic relations with key ICC 4 in domestic and international 6 government members (Australia, England and India) Access Lack of access to facilities and local broadcasting market to cricket government support to grow cricket Implement Member/SRSA agreements Media rights H Changing landscape of the H facilities in disadvantaged areas income consumption of media from Identify and implement new black African cricket To create and stream more of our content schools 4 analogue to digital and live streaming KFC Mini-Cricket Programme and Volunteer 6 Coaching Programme Sponsorships Maintain a good cash reserve for support during A lack of interest in the cricket Anaemic economic growth could 4 Development and the low economic growth development programmes, e.g. KFC, RPC and Hubs 6 result in a decline in corporate H of interest in M commercial resulting in declining number of sponsorship spending Manage the length of sponsorship contracts 6 cricket partners participants Pink Day Initiative and Momentum friendship matches, Match Officials recruitment and Increase the base on international matches 6 Expected reduction in CSA’s training programmes in Hubs and RPCs Future Tours against top-tier countries international bilateral matches may Programme H Review the Schools Cricket system and result in a decline in media rights Operate a four-year financial planning cycle 4 (FTPs) developing a school’s cricket plan and sponsorship income post 2020 to ensure that the long-term needs of cricket development are not compromised Continue implementing the Schools Growth 4 Schools Strategy 2020 Operational Ineffective schools growth M cricket Human Non-delivery of strategic objectives Review schools cricket with regard to long-term Conduct an organisational design review 4 sustainability 4 capital due to inadequate human capital Ageing infrastructure at stadiums M Talent scouting in rural and township areas 4 Infrastructure and lack of adequate and well- Develop and implement a facilities plan 4 maintained cricket facilities Revise High-Performance Strategy with clear 6 selection objectives for each team Cost and Ineffective development and Project due diligence High project Regulate cost and project execution M performance of CSA representative M Implement a fulltime High-Performance Implementing project management best practice performance 6 control teams coaching structure Inadequate expertise to adapt to Technology H Implementation of the IT Governance Framework Focused player monitoring and interventions 6 modern IT systems 4 16 17 Risk Progress Strategic Risk Description rating Mitigating actions in 2017/18 objective CHIEF FINANCIAL OFFICER’S REVIEW Brand and communications OVERVIEW Some of the notable financial achievements over the four-year period included: Maintaining good governance and internal 6 control structures FOUR-YEAR FINANCIAL PLANNING PERIOD Image and • Cumulative growth in broadcast revenues, ICC Maintain and build the CSA Brand Strategic and transparent communication with reputational H The 2017/18 financial year end marks the conclusion distributions, sponsorships, increased attendance and public image all stakeholders 4 management of CSA’s four-year financial cycle. It is therefore fitting and CLT20. As a predominantly export company, Long term strategic communication for CSA to reflect on the current financial planning period as the weakening of the ZAR against USD also well as the financial performance over the past four contributed to the increase. Transformation years. • Growth due to expansion in the business. Meeting our mandate of making cricket accessible to all Coordinate accurate data collection 4 Current Previous 4-Year 4-Year who want to play. Monitor and analyse data to inform future CSA Financial Financial • A substantial increase in Member distributions 4 Cycle Cycle and growth in professional cricket player Inability to attain EPG transformation strategies EPG Business remuneration. targets due to inaccurate data and M Establish Transformation initiates through Revenue – R’m 3 954 2 504 Intelligence data capturing Member transformation committees and track Expenses – R’m (3 356) (2 189) Overall the positive increase in the company’s the outcome on an annual basis. Profit/(loss) R’m 598 315 financial performance can be attributed to effective External communication of transformation T20GL (192) – operational and treasury management and world- achievements to all stakeholders 4 Consolidated Profit/(loss) R’m 406 315 class governance. Government and stakeholder relations CURRENT FINANCIAL PERIOD Breakdown in relations between CSA and stakeholders could lead to The operating environment remained challenging revocation of hosting international because of South Africa’s muted economic growth, events, lack of government support, a volatile rand and an unstable political horizon in the All key reputational risk, diminished M Ongoing engagement with key stakeholders build up to the national general elections in 2019. stakeholders prominence with ICC Members, 4 lack of trust between players and Despite an economically challenging environment, CSA, ineffective communication and CSA recorded profits of R542 million (2016/17: decisions at Board and Member loss of R159 million). A consolidated net profit of levels R350 million was realised after taking into account T20 expenditures of R192 million. The bumper summer season of inbound international cricket Legend Strategic objectives tours, featuring Bangladesh, Zimbabwe, India and 6 Substantially Achieved Excellence Australia (with India being our biggest revenue earner 4 Substantial Progress Development from broadcast rights) is the primary reason for Limited progress/Objective not yet achieved Sustainability significant profits in the current year. The stadiums attracted record crowds and boosted international H High Risk Transformation gate ticket takings. Another significant contributing M Medium Risk Brand promotion and marketing factor to the positive results for CSA is effective L Low Risk forex management, which softened the T20 losses.

18 19 The revised T20 model will generate some enduring During the current year, break-even or better the previous year to R627 million, the company revenues, including looking for lucrative investment benefits not only in retention of players but content performance was achieved by most Members remains a going concern into the foreseeable future, opportunities to further boost CSA’s cash position. for our stadiums and growing the fan base. (9/14) and Franchises (4/6). It is encouraging to supported by a strong cash position and the ability note that Member Boards have started to explore to meet its operational needs, as well as obligations The Board considered CSA’s future commitments to The company continued to make investments in opportunities to diversify their revenue streams, as and when they arise. continue all forms of cricket in South Africa and is the stadiums and contributed a total of R34 million in order to decrease their sole reliance on CSA confident that with the renewed organisational focus for the basic stadium upgrades across the country distributions and to ensure the future sustainability of The company is further supported by a strong and drive, these resources ensure the sustainability and issued a total of R161 million in the form of soft cricket. operational business model. Management is of cricket in South Africa in spite of the fluctuating loans to stadiums. These loans arose out of a Board confident that the company will continue generating seasonal revenues in the foreseeable future. decision to provide financial assistance to address Operational Model revisions have been taking place, solid cash flows from expected future revenue all the stadium areas needing capital expenditure, with a greater emphasis on improving efficiencies at enhancements. This going concern assumption In conclusion, I would like to acknowledge the repairs, maintenance, renovation, upgrades or Members and effective cost management. is supported by a stable internal structure and continued support and financial contribution made refurbishment (i.e. cutting-edge artificial lighting governance environment, providing a solid platform to South African cricket by our fans, players, systems, advanced sports field technology and GOING CONCERN as CSA enters the next four-year financial planning commercial partners and sponsors, suppliers, other LED scoreboards), as well as revamping change- cycle. external stakeholders, Members, Directors and rooms and media centers as identified by CSA and As CSA’s revenue model is cash based with largely especially our dedicated staff. We acknowledge the Members. Notable progress has been made by fixed expense obligations, it is important to ensure EXPENDITURE that the years ahead will be financially challenging, the various stadiums with some of them being able the organisation has a strong cash position to however, with the continued support of all to secure funding from their local municipalities to create reserves in order to service the operations of CSA’s expenditure increased by 34% to stakeholders, we will continue to manage CSA assist with their upgrades. In the previous year, CSA the company. As at 30 April 2018, although CSA’s R1 219 million in the current financial period, finances effectively and ensure cricket reaches all contributed R350 million towards stadium upgrades. cash position has decreased from R740 million in with the main expense being professional cricket South Africans. R707 million (2016/17: R463 million) and amateur cricket R341 million (2016/17: R301 million). Due to the nature of the business, expenditure is mainly fixed and not aligned with fluctuating revenues. Most of these costs are committed to cricket development through our Members to ensure ZIYANDA NKUTA CA(SA) delivery of cricket to all South Africans. Whereas Acting Chief Financial Officer revenues are largely USD denominated, costs are largely rand-based. 8 September 2018 FINANCIAL OUTLOOK

As CSA embarks on its next four-year financial planning cycle, the focus on revenue diversification and effective and efficient expenditure management will be critical. With broadcast revenue being a significant contributor to CSA’s profitability, a reduction in the FTP content and lucrative inbound tours going forward could put a strain on the company’s revenue generation. The loss of CLT20 income due to the joint venture termination between India, Australia and CSA results in CSA no longer earning approximately R70 million per annum going forward. Sponsorship growth is also not anticipated to be as high as the previous four-year cycle.

Considering the above, management will be reviewing CSA’s long-term strategy with the view to containing expenditure and growing

20 21 Summary financial statements Summary financial statements PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC FOR THE YEAR ENDED 30 APRIL 2018 FOR THE YEAR ENDED 30 APRIL 2018

INDEPENDENT AUDITOR’S REPORT ON THE SUMMARY FINANCIAL STATEMENTS TO THE DIRECTORS OF CRICKET SOUTH AFRICA NPC Group CSA SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER 2018 2018 2017 Opinion Auditor’s Responsibility COMPREHENSIVE INCOME R’000 R’000 R’000 In our opinion, the consolidated and separate Our objectives are to obtain reasonable assurance financial statements present fairly, in all material about whether the consolidated and separate Revenue 1 526 393 1 526 393 674 935 respects, the consolidated and separate financial financial statements as a whole are free from Amateur cricket 39 860 39 860 26 792 position of Cricket South Africa NPC and its material misstatement, whether due to fraud or subsidiary (together the Group) as at 30 April error, and to issue an auditor’s report that includes Professional cricket 1 486 533 1 486 533 648 143 2018, and its consolidated and separate financial our opinion. Reasonable assurance is a high level Coach Hire - performance and its consolidated and separate cash of assurance, but is not a guarantee that an audit flows for the year then ended in accordance with conducted in accordance with ISAs will always Expenses (1 219 049) (1 215 363) (910 392) International Financial Reporting Standards and the detect a material misstatement when it exists. requirements of the Companies Act of South Africa. Misstatements can arise from fraud or error and Central cost (113 479) (109 793) (92 245) are considered material if, individually or in the Amateur cricket (340 831) (340 831) (300 679) In our opinion, the accompanying summary financial aggregate, they could reasonably be expected to statements are consistent, in all material respects, influence the economic decisions of users taken Professional cricket (706 744) (706 744) (462 545) with the audited financial statements, on the basis on the basis of these consolidated and separate National team (57 995) (57 995) (54 923) described in the notes to the summary financial financial statements. statements. Coach Hire - Our responsibility is to express an opinion on Operating (loss) profit 307 344 311 030 (235 457) Summary Financial Statements whether the summary financial statements are The summary financial statements do not contain consistent in all material respects, with the audited Investment income 29 783 29 783 50 128 all the disclosures required by IFRS. Reading the financial statements based on our procedures, Net foreign exchange gain 48 449 48 449 24 020 summary financial statements and the auditor’s which were conducted in accordance with report thereon, therefore, is not a substitute for International Standards on Auditing (ISA) 810 Fair value adjustments (35 577) (35 577) 2 499 reading the audited financial statements and the (Revised), Engagements to Report on Summary (Loss) profit before taxation 349 999 353 685 (158 810) auditor’s report thereon. Financial Statements. Taxation - The Audited Financial Statements and Our Report Thereon (Loss) profit for the year 349 999 353 685 (158 810) We expressed an unmodified audit opinion on the Other comprehensive income - audited financial statements in our report dated 6 August 2018. TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE YEAR 349 999 353 685 (158 810) KJ DIKANA CA(SA) Management’s Responsibility for the Summary Registered Auditor Director Financial Statements Management is responsible for the preparation of PricewaterhouseCoopers Inc the summary financial statements on the basis as Johannesburg described in the notes to the summary financial statements. 6 August 2018

22 23 Summary financial statements Summary financial statements PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC FOR THE YEAR ENDED 30 APRIL 2018 FOR THE YEAR ENDED 30 APRIL 2018

Group CSA 2018 2018 2017 RETAINED SUMMARY STATEMENT OF FINANCIAL POSITION R’000 R’000 R’000 EARNINGS SUMMARY STATEMENT OF CHANGES IN EQUITY R’000 ASSETS Balance as at 30 April 2016 814 254 Non-current assets 454 626 454 626 169 554 Total comprehensive loss for the year (158 810) Current assets excluding cash and cash equivalents 337 640 341 326 233 761 Balance as at 30 April 2017 655 444 Cash and cash equivalents 626 514 626 514 740 446 Total comprehensive profit for the year 349 999 TOTAL ASSETS 1 418 780 1 422 466 1 143 761 Balance as at 30 April 2018 1 005 443 EQUITY AND LIABILITIES RESERVES 1 005 443 1 009 129 655 444 Retained earnings 1 005 443 1 009 129 655 444

LIABILITIES 413 337 413 337 488 317 2018 2017 SUMMARY STATEMENT OF CASH FLOWS R’000 R’000 Non-Current liabilities 11 635 11 635 65 249 (Loss) profit before taxation 349 999 (158 810) Current liabilities 401 702 401 702 423 068 Non-cash adjustments to reconcile net profit to net cash flows 77 743 (11 886) TOTAL EQUITY AND LIABILITIES 1 418 780 1 422 466 1 143 761 Working capital adjustments (291 750) 34 935 Net cash (outflow) inflow from operating activities 135 992 (135 761) Net cash (outflow) inflow from investing activities (249 924) (147 102) Net cash flow from financing activities - - Net (decrease)/increase in cash and cash equivalents (113 932) (282 863) Cash and cash equivalents at beginning of the year 740 446 1 023 309 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 626 514 740 446

24 25 Summary financial statements events. Refer to page 5 of the full annual financial 7 DISCLOSURE OF FINANCIAL INSTRUMENTS statements for the Directors’ Report where details The company has long and short term structured PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC related to events after the reporting period is investment products with Momentum Holdings FOR THE YEAR ENDED 30 APRIL 2018 provided. and Investec Bank. These investments are designated to be measured at fair value, with 5 DISCLOSURE OF CHANGE IN DIRECTORS changes recognised in profit or loss. The fair NOTES TO SUMMARY FINANCIAL STATEMENTS On 1 October 2017, T Moroe was appointed as value of these investments is determined at a Acting Chief Executive and appointed as Chief Level 1, which is directly linked to observable 1 NATURE OF BUSINESS AND OPERATIONS carrying value and fair value less costs to sell, as Executive from 17 July 2018. Refer to page 2 market data linked to the positive growth of The main business of Cricket South Africa NPC applicable. of the full annual financial statements where the MSCI World Index and FTSE/JSE Africa (the “company”) is custodianship of all cricket the Directors’ Report provides details related to Top 40 Price Return Index. Refer to note 7 of activities which ultimately advance amateur and The preparation of financial statements requires the entire list of directors as well as changes in the full annual financial statements for detailed professional cricket in South Africa. the use of estimates and assumptions that affect directors. disclosure of CSA’s investments. the reported values of assets and liabilities, and 2 BASIS OF PREPARATION disclosures of contingent assets and liabilities 6 DISCLOSURE OF RELATED PARTIES Summary financial statements at the date of the financial statements and the CSA enters into various related party The summary financial statements are prepared reported amounts of revenues and expenses transactions in the ordinary course of business. in accordance with the requirements of the during the reported period. Although these Transactions and balances between related Companies Act applicable to summary financial estimates are based on management’s best parties during the year were at arm’s length C H NENZANI statements. The Companies Act requires knowledge of current events and actions, unless otherwise disclosed. CSA’s related Chair – Board of Directors summary financial statement reports to be actual results may ultimately differ from those parties comprise of its Board of Directors; 6 August 2018 prepared in accordance with the framework estimates. Prescribed Officers; Affiliate, Associate and concepts and the measurement and recognition Ancillary Members; Cricket Stadium entities; and requirements of International Financial The estimates and underlying assumptions Franchises. Refer to note 14 of the full annual Reporting Standards (IFRS) and the SAICA are reviewed on an ongoing basis. Revisions financial statements for further details related to Financial Reporting Guides as issued by the to accounting estimates are recognised in the transactions entered into between CSA and its Accounting Practices Committee and Financial period in which the estimate is revised if the related parties. Furthermore, details pertaining L L VON ZEUNER Pronouncements as issued by the Financial revision affects only that period or in the period to loan balances between CSA and its related Chair – Audit and Risk Committee Reporting Standards Council and to also, as a of the revision and future periods if the revision parties is disclosed in note 8 of the full annual 6 August 2018 minimum, contain the information required by affects both current and future periods. financial statements. IAS 34 Interim Financial Reporting. 3 DISCLOSURES RELATING TO THE ANNUAL The accounting policies applied in the FINANCIAL STATEMENTS preparation of the financial statements, from The significant accounting policies and detailed which the summary financial statements were notes to the annual financial statements are derived, are in terms of IFRS and are consistent disclosed in the audited annual financial M I KHAN with the accounting policies applied in the statements which are available at the offices Chair – Finance and Commercial Committee preparation of the previous annual financial of the company or on the Cricket South Africa 6 August 2018 statements. website www.cricket.co.za.

Annual financial statements (full AFS) 4 DISCLOSURE OF EVENTS AFTER The annual financial statements have been REPORTING PERIOD prepared in accordance with IFRS, and in the On 19 June 2017, CSA issued 8 operating manner required by the Companies Act of South licences to Franchisees who intend to participate Africa. as teams in CSA’s newly created League (a Twenty20 cricket league). The League is called The financial statements have been prepared the T20 Global League (T20GL). On 22 June under the historical cost basis, except for certain 2017, ownership of CSA’s new office building was financial instruments carried at fair value, and transferred into CSA’s name from the property non-current assets which are held at the lower of developer. These two matters are non-adjusting

26 27 Summary financial statements Note 1: On 10 February 2017, T20 Global League (Pty) Ltd, registration number (2017/065019/07), an entity incorporated under Section 14 of the Companies Act, and a wholly owned Subsidiary of CSA was PREPARED FROM THE AUDITED ANNUAL FINANCIAL STATEMENTS OF CRICKET SOUTH AFRICA NPC registered with the CIPC. T20 Global League (Pty) Ltd did not produce nor file its annual financial FOR THE YEAR ENDED 30 APRIL 2018 statements with the CIPC for its financial year ended 30 April 2017. T20GL has produced and will file the first annual financial statements for the 15 month period ending 30 April 2018 with the CIPC and other regulatory authorities. SUPPLEMENTARY INFORMATION Since incorporation T20GL did not generate any revenue from operating activities and CSA incurred CRICKET SOUTH AFRICA RELATED MEMBERS / BODIES/ STRUCTURES / SUBSIDIARY (See Note 1 on page 29) expenses of R192 million on behalf of T20GL. The financial results and position of T20GL was consolidated into the annual financial statements of CSA from the financial year ending 30 April 2018. Name Geo-political Boundary Franchise Teams CSA Accredited Playing Venues The purpose of T20GL was to own and operate a Twenty20 cricket league called the T20 Global League Boland Boland Park – Paarl (“the League”) under the auspices of Cricket South Africa that was subsequently deregistered by a South Western Districts Western Cape Cape Cobras Recreational Ground – Oudtshoorn board resolution in February 2018. The company was formally deregistered in terms of section 83(3) of the Companies Act on 17 May 2018. Western Province Cricket PPC Newlands – Cape Town Eastern Cricket Sahara Willowmoore Park – Benoni Gauteng Unlimited Titans Northerns Cricket SuperSport Park – Centurion FOUR YEAR FINANCIAL PLAN – 1 MAY 2014 TO 30 APRIL 2018 Free State Cricket Free State Mangaung Oval – Bloemfontein Knights Apart from the annual budgets and actual results, CSA prepares budgets and operates its business on the Northern Cape Cricket Northern Cape Diamond Oval – Kimberley basis of a 4-year financial planning cycle to take account of the decidedly variable revenue flows that arise Border Cricket Buffalo Park – East London from the divergent inbound international tours to South Africa each year. The 4-year cycle allows CSA to plan Eastern Cape Warriors Affiliate Members [12] Eastern Province Cricket St George’s – Port Elizabeth programmes more sustainably and evaluate its finances more meaningfully. This is why annual results should be Gauteng Cricket Gauteng Bidvest Wanderers Stadium – Johannesburg viewed in the context of the 4-year cycle. The table below depicts CSA’s financial results over the 4-year cycle. Bizhub Highveld Lions North West Cricket North West Senwes Park – Potchefstroom 2018 2017 2016 2015 Sahara Stadium Kingsmead – Durban Kwa-Zulu Natal Cricket KwaZulu-Natal Sunfoil Dolphins Actual Actual Actual Actual Description Pietermaritzburg Oval – Pietermaritzburg R’000 R’000 R’000 R’000 Name Geo-political Boundary Subsidiary Company (100% owned) Revenue 1 526 393 674 935 822 926 765 600

[2] Limpopo Impala Cricket Limpopo T20 Global League (Proprietary) Limited [‘’T20GL’’] Expenses (1 219 049) (910 392) (777 047) (695 476) Members Associate Mpumalanga Cricket Mpumalanga Financial income 42 655 76 647 61 280 37 550 Net profit (loss) 349 999 (158 810) 107 159 107 674

Affiliate Members Associate Members Franchise Teams Subsidiary Company (Note 1) The unaudited supplementary information does not form part of the summary financial statements and is The twelve entities that serve as The two cricket entities, other The representative teams T20 Global League (Proprietary) presented as additional information. the custodians of amateur cricket than an Affiliate Member or owned by the Affiliate Members Limited [‘’T20GL’’] with in each of the specified regions Associate Province, which and which participates in registration number in South Africa as determined meets the relevant criteria as professional domestic cricket 2017/065019/07 was a wholly by the Members Council from determined by CSA from time to under the auspices of CSA. The owned subsidiary of Cricket time to time. The President of time. These entities serve as the current structure consists of six South Africa NPC. The principal each Affiliate is a member of the custodians of amateur cricket Franchise teams. activity of T20GL was to operate Company’s Members Council in a specified area within South a Twenty20 cricket league called (“Shareholder group”). Africa. the T20 Global League under the auspices of CSA.

28 29 Audit and Risk Committee report and litigation, reported cases of fraud, and and Chief Financial Officer attended and reported at whistle-blowing reports; all meetings of the Audit and Risk Committee. Other • Reviewed the sustainability requirements for relevant senior managers (members of the executive The Audit and Risk Committee has pleasure in duties delegated to it, by the Board. The company external assurance of material sustainability issues; committee) attend meetings by invitation. submitting their report, which has been approved applies a combined assurance model. The • Approved the audit fees and engagement terms of by the Board and has been prepared in line with committee has evaluated the Annual Financial the external auditor; Confidential Meetings the South African Companies Act no 71 of 2008 Statements of the Group for the 2018 financial • Determined the nature and extent of allowable Audit and Risk Committee agendas provide for (the Act) and incorporating the recommendations year and, based on the information provided to non-audit services and approved contract terms confidential meetings between committee members of the King IV (effective 1 November 2016) Code the Audit and Risk Committee, consider that the for non-audit services by the external auditor; and and the internal and external auditors. of Corporate Governance that applies to all entity Group complies in all material respects with the • Considered and supported the going concern structures. Cricket South Africa recognises the requirements of the Companies Act and IFRS. The status of the company. Appointment and Independence of the External importance of the Corporate Governance principles Committee has recommended the Annual Financial Auditor as espoused in the South African Companies Act Statements to the Board for approval. Internal Audit Following the removal of Nkonki Inc as the and King IV. • The Audit and Risk Committee has oversight incumbent external auditors, CSA and its Members The committee is satisfied and the Board has of the company’s Annual Financial Statements appointed PricewaterhouseCoopers Inc. (PwC) via a Members of the Audit and Risk Committee and concurred that, for the 2018 financial year, the and reporting process, including the systems Round Robin Resolution as the centralised external attendance of meetings committee has performed all the functions required of internal financial control. It is responsible for auditor. Nkonki was removed as a result of negative The Audit and Risk Committee consists of to be performed by an Audit and Risk Committee ensuring the company’s Internal Audit function is media release which implicated senior officials independent, non-executive members and non- as set out in the Companies Act and its Terms of independent and has the necessary resources, of Nkonki Inc regarding an alleged fronting deal independent non-executive directors of the Reference. These duties were discharged as follows: standing and authority in the organisation to involving a person associated with the Gupta family. governing body as listed below and meets at least discharge its duties. The committee oversees The CSA Audit and Risk Committee recommended four times per annum with internal and external • Reviewed the company Annual Financial co-operation between internal and external in April 2018 for approval by the Members Council, auditors respectively. All committee members of Statements and the Integrated Report, culminating auditors and serves as a link between the Board the removal of Nkonki as the incumbent external the Audit and Risk committee, as a whole, have the in a recommendation to the Board to adopt them. of Directors and these functions. The internal auditors and the appointment of PwC as the external necessary financial literacy skills and experience to In the course of its review, the Committee: auditor reports functionally to the chair of the auditors for the financial year ending 30 April 2018 execute their duties effectively. The appointments • Took appropriate steps to ensure the annual committee and administratively to the Acting Chief for CSA, Members, Franchises and Stadiums. PwC were approved by the Members at the AGM held on financial statements were prepared in Financial Officer. On 1 October 2017 the internal was in the request for proposal process conducted in 2 September 2017. accordance with IFRS and the requirements of auditor position was filled, and internal audit 2016 for external audit services and was the second the Companies Act; duties were being carried out specifically with the choice for the centralised audit. The Audit and Risk Should the committee members maintain their seats • Considered and, where appropriate, made focus on T20GL (Income, expenditure, Internal Committee considered the independence of PwC on the Board of Directors, the same members are recommendations on internal financial controls; controls and governance). Internal audit work is and were satisfied. being recommended by the Board for reappointment • Dealt with any concerns or complaints on in accordance with the approved annual audit at the next AGM on 8 September 2018 for the accounting policies, internal audit, the auditing plan which identifies the audit assignments for the Expertise and experience of the Chief Financial ensuing financial year ending 30 April 2018. or content of annual financial statements, and year that are considered to be priority areas. The Officer and the finance function internal financial controls; and audit assignments include audit work conducted The Audit and Risk Committee has satisfied itself Four meetings were held during the past financial • Reviewed matters that could have a significant at CSA and Affiliate level. Internal Audit also that the Acting Chief Financial Officer, Ms Z Nkuta year and attendance of meetings is set out below. impact on the organisation’s annual financial assist on investigations of suspicious transactions (CA)SA has the requisite expertise and experience to statements. identified by Affiliate management. lead and manage the finance function. Member Meetings attended • Reviewed the external audit report on the annual Louis von Zeuner (Chairman) 4/4 financial statements; Risk Management In addition, the committee has satisfied itself that the Vusi Pikoli 3/4 • Reviewed the quarterly management accounts; The Board did not split the committee’s responsibilities composition, experience and skills set of the finance Mohamed Iqbal Khan 3/4 • Reviewed and approved the internal audit plan; of audit and risk. Besides activities already function met the company’s requirements. Thabang Moroe 1/4 • Reviewed and updated Corporate Risk Scorecard mentioned, the committee has oversight of the Risk and made recommendation for Board’s approval; Management Function of CSA and have approved Functions of the Audit and Risk Committee and • Reviewed the internal audit and risk the key risk areas that are monitored through the discharge of its responsibilities management reports and, where relevant, made activities of management and internal audit. The Audit and Risk Committee has adopted the recommendations to the Board; LOUIS VON ZEUNER Terms of Reference, approved by the Board, setting • Evaluated the effectiveness of risk management, Attendance Chairman out its duties and responsibilities as prescribed by controls and governance processes; The internal and external auditors, in their capacity the Companies Act and incorporating additional • Considered reports relating to legal compliance as auditors to the company, and the Chief Executive 6 August 2018

30 31 CSA ORGANISATIONAL STRUCTURE Sessions CSA is the custodian of cricket in South Africa and was established in 1991 (previously known as the United Cricket Board of South Africa) as a non-profit 32 Who we are Cricket South Africa (CSA) company to develop, administer and control 34 Business model and all aspects of the sport in the country, from Chief Executive, Management and Staff value creation amateur to professional including men’s, GOVERNANCE OPERATIONS women’s and youth cricket. Boland Easterns Free State Border 70 Transparency and Western Gauteng Limpopo Province Cricket Cricket Cricket Cricket KZN Mpumalanga Cricket Impala Cricket accountability South Northerns Northern Eastern NW Cricket Cricket CSA breaks boundaries on and off the Western Cricket Cape Province Districts 89 CSA representation field by uniting our nation through the love of the sport. Our cricket fans and Members Council teams represent our rainbow nation 14 Member Presidents because THAT’S OUR GAME! Board of Directors 12 (includes 5 Independent Directors)

Audit & Risk Remuneration Finance & Cricket Pipeline Cricket Social & Transformation Independent Committee & HR Commercial Committee Committee Ethics Committee Nomination Who we are OPERATIONS Committee Committee Committee Committee ORGANISATIONAL STRUCTURE Chief Executive, Management and Staff CSA has four membership categories (Affiliate, Associate, Ancillary and Life Member) with specified rights attributed to each category. In broad terms Cricket South Africa (CSA) GOVERNANCE these four categories are split into a class of voting and non-voting members.

CSA has 14 Affiliate Members who own the six professional franchises: Cape Cobras, Dolphins, Warriors, Knights, Highveld Lions and CSA BUSINESS ACTIVITIES Titans. These Affiliates and Associates administer amateur and senior provincial cricket in their regions and through their franchises administer professional Transformation cricket. Affiliates and Associates are collectively Commercial Finance and Legal and Media and Cricket Services and Marketing Administration Secretariat and stakeholder Communications referred to as Members. CSA is ultimately governed relations by the Members’ Council.

32 33 CSA ORGANISATIONAL STRUCTURE BUSINESS MODEL AND VALUE CREATION CSA ORGANISATIONAL STRUCTURE BUSINESS MODEL AND VALUE CREATION

BUSINESS MODEL CREATING VALUE BUSINESS MODEL CREATING VALUE

Cricket South Africa (CSA) CSA’s core business is the custodianship of all CSA creates value by using its capital resources in Cricket South Africa (CSA) CSA’s core business is the custodianship of all CSA creates value by using its capital resources in 4 cricket activities in South Africa, advancing both a way that is balanced and guided by its strategic 4 cricket activities in South Africa, advancing both a way that is balanced and guided by its strategic amateur and professional cricket. However, we objectives, taking its various stakeholders’ amateur and professional cricket. However, we objectives, taking its various stakeholders’ Chief Executive, Management and Staff believe cricket is more than just a game: it assists considerations into account. Chief Executive, Management and Staff believe cricket is more than just a game: it assists considerations into account. Commercial value creation is important C is important GOVERNANCE in crossing boundaries on and off the eld and GOVERNANCE in crossing boundaries on and off the eld and for our commercial partners who invest for our commercial partners who invest OPERATIONS contributes to the transformation of our society. OPERATIONS contributes to the transformation of our society. signifi cantly in CSA to help achieve our signifi cantly in CSA to help achieve our Boland CSA uses six interrelated capitals – nancial, human, Boland CSA uses six interrelated capitals – nancial, human, Easterns Free State Border Easterns Free State Border strategic objectives. Our commercial partners Western Gauteng Limpopo strategic objectives. Our commercial partners Western Gauteng Limpopo Province Cricket Cricket Cricket Cricket KZN Mpumalanga manufactured, intellectual, social and relationship, Province Cricket Cricket Cricket Cricket KZN Mpumalanga manufactured, intellectual, social and relationship, derive returns on this investment through Cricket Impala Cricket derive returns on this investment through Cricket Impala Cricket South Northerns Northern Eastern NW Cricket Cricket and natural – to achieve its strategic objectives in a South Northerns Northern Eastern NW Cricket Cricket and natural – to achieve its strategic objectives in a awareness and marketing campaigns across Western Cricket Cape Province awareness and marketing campaigns across Western Cricket Cape Province 3 Districts balanced and sustainable manner. CSA’s inputs and 3 Districts balanced and sustainable manner. CSA’s inputs and various platforms including TV, radio, business activities work together to produce outputs various platforms including TV, radio, business activities work together to produce outputs Transformation value creation Facebook, Twitter and Instagram. that create value for its stakeholders, while assuring T Facebook, Twitter and Instagram. that create value for its stakeholders, while assuring is a non-negotiable imperative in Members Council alignment to our vision and mission. is a non-negotiable imperative in Members Council alignment to our vision and mission. redressing the imbalances of the past, 14 Member Presidents 2 redressing the imbalances of the past, 14 Member Presidents 2 creating active lifestyles and ensuring a CSA’s operational model is intended to guide CSA’s creating active lifestyles and ensuring a CSA’s operational model is intended to guide CSA’s winning sporting nation. It also enables growth Board of Directors business model, its Members, franchises and winning sporting nation. It also enables growth Board of Directors business model, its Members, franchises and 12 (includes 5 Independent Directors) 12 (includes 5 Independent Directors) of the game through CSA’s talent pipeline, stadiums on how best to apply and allocate its Social value creation is a signifi cant of the game through CSA’s talent pipeline, stadiums on how best to apply and allocate its S is a signifi cant from mini-cricket to international participation. capital resources to deliver on its strategies outcome of CSA’s business activities, from mini-cricket to international participation. capital resources to deliver on its strategies outcome of CSA’s business activities, Through CSA’s cricket development initiatives, in a sustainable manner. delivering on our vision of ensuring that Through CSA’s cricket development initiatives, in a sustainable manner. delivering on our vision of ensuring that Audit & Risk Remuneration Finance & Cricket Pipeline Cricket Social & Transformation Independent Audit & Risk Remuneration Finance & Cricket Pipeline Cricket Social & Transformation Independent it has widened its reach to create better Committee & HR Commercial Committee Committee Ethics Committee Nomination cricket is supported by most South Africans it has widened its reach to create better Committee & HR Commercial Committee Committee Ethics Committee Nomination cricket is supported by most South Africans OPERATIONS OPERATIONS access and opportunities to the many Committee Committee Committee Committee and available to those who want to play the access and opportunities to the many Committee Committee Committee Committee and available to those who want to play the talented South Africans. game. talented South Africans. game.

Chief Executive, Management and Staff Chief Executive, Management and Staff

Cricket South Africa (CSA) GOVERNANCE Cricket South Africa (CSA) GOVERNANCE 5 1 5 1 Economic value is created for South E is created for South Africa through hosting international and CSA BUSINESS ACTIVITIES Financial value creation is vital to Africa through hosting international and CSA BUSINESS ACTIVITIES is vital to franchise cricket games. International fans who our fi nancial sustainability and enables franchise cricket games. International fans who our fi nancial sustainability and enables travel to support their teams spend their money us to create additional areas of value and travel to support their teams spend their money us to create additional areas of value and on food, beverage, accommodation and popular support to our Members through activity-based on food, beverage, accommodation and popular support to our Members through activity-based South African tourist destinations. Local fans Commercial Finance and Legal and Transformation Media and distributions. CSA uses various revenue sources South African tourist destinations. Local fans Commercial Finance and Legal and Transformation Media and distributions. CSA uses various revenue sources Cricket Services and Marketing Administration Secretariat and stakeholder Communications Cricket Services and Marketing Administration Secretariat and stakeholder Communications also support economic value through food relations to create fi nancial value and explore alternative also support economic value through food relations to create fi nancial value and explore alternative and beverage spend. revenue streams. and beverage spend. revenue streams.

35 40 33 34 35 40 33 34 OUTPUTS OUTCOMES BALANCING THE USE OF THE SIX CREATING VALUE FOR ALL CREATING CRICKET #PROTEAFIRE | YOUTUBE FACEBOOK | TWITTER INSTAGRAM | … THAT’S OUR GAME … DEVELOPMENT | EXCELLENCE TRANSFORMATION | SUSTAINABILITY | BRAND PROMOTION CAPITAL RESOURCES STAKEHOLDERS AND NATION SUPPORTING BUILDING THROUGH THE OPPORTUNITIES FOR FINANCIAL CAPITAL resources are critical GAME OF CRICKET ALL SOUTH AFRICANS for CSA to fund its business activities and are largely raised through: media rights, FINANCIAL CAPITAL • Proteas ranking sponsorships, ICC distributions, investment Total revenue: R1,0 billion – Test #2 income, government and lotto grants, Funding (2017: R675 million) – ODI #4 international gate ticket takings and other Ensure that CSA has the nancial capability to manage, develop, support Provide opportunities for talented cricketers at various levels to develop their Cash balance: R626 million income. and sustain its cricket activities. These activities include selling media rights, potential and create a culture of excellence and continuous improvement to – T02 #6 INPUTS (2017: R740 million) 59 employees securing broadcasting rights and sponsorships as well as managing cricket encourage consistent world-class performance. Various facilities are provided • Kagiso Rabada ranked HUMAN CAPITAL resources include Investment income: R29,7 million events including licencing and merchandising as well as monetising our digital to support these cricketers including development support staff, coaches and (2017: R50 million) #1 bowler in ODI permanent and fi xed term staff (contracted assets. umpires, cricket academies, high-performance centres. CSA also offers cricket players, team management and admin Retained earnings: R1,5 billion 21 fi xed term contractors opportunities for the deaf, hearing impaired as well as players with learning • EPG score 62% fi xed term) and independent contractors. (2017: R655 million) disabilities. Transformation remains a focus throughout the various cricket Financial capital resources are used to • >123 337 children develop and upskill our cricket talent Proteas men and women levels. HUMAN CAPITAL have benefited through and staff, who are our ambassadors 71 administration employees attended the KFC Mini-Cricket promoting the CSA brand. Transformation is cricket teams training Programm intertwined with all cricket and development (2017: 62) focus areas as well as with administrative • 80% black CSA staff Employee remuneration R256 million staff. (2017: R210 million) • 92% black Board members – 2 women MANUFACTURED CAPITAL resources 21 Proteas men’s cricketers and 14 include CSA’s new head offi ce building CSA MEMBERS ICC GERNMENT SPNSRS SPPLIERS CMMNITIES PLAERS Proteas women’s cricketers ASSCIATINS EMPLEES BRADCASTERS FANS • 12 black Proteas Men’s which is the only property it owns, and MEDIA players CSA’s Centre of Excellence, cricket stadiums MANUFACTURED CAPITAL and the Hubs, RPCs and academies that 67 operational Hubs and RPCs that • Schools and Club cricket support CSA’s cricket activities. focus on the grassroots level of the • High-performance game, setting the foundations for the programmes INTELLECTUAL CAPITAL resources include future of South African cricket. CSA’s various brands, most notably the • Cricket Franchises Proteas, as strategic intellectual capital. CSA is committed to INTELLECTUAL CAPITAL CSA’s branding and communication process BUSINESS ACTIVITIES • The Pink Drive developing accessibility Sponsorships gives a voice to the organisation and for talented cricket players, Managing our capital inputs through our business activities and support services promotes CSA’s vision and grows CSA’s CSA brand including the Proteas • SBSA sponsorship acknowledging its successes and Experienced leadership exposure to attract sponsors and partners to • World-class umpires further boost fi nancial capital. Additionally, learning from challenges to make Experienced coaches and umpires the wealth of knowledge in our human cricket a truly national sport of GOVERNANCE | RISK • Accredited coaches capital and data systems ensure optimal winners. CSA strives for excellence SUPPORT SERVICES ensure that CSA has marketing, media and communications, Best practice corporate governance and SOCIAL AND RELATIONSHIP • Fort Hare processes and effi ciencies. and aims to be the most sustainable the administrative capability to manage governance, legal, secretariat and risk management forms the foundation to CAPITAL and successful cricket federation and support its cricket and commercial compliance, transformation and Member Cricket development expenditure: SOCIAL AND RELATIONSHIP CAPITAL worldwide. activities. These services include: nance relations, cricket services and internal all CSA’s business activities in support of R341 million resources include the various Amateur and and administration, commercial and audit. our vision and mission. (2017: R301 million) stakeholders who play a valuable role FINANCE | ADMINISTRATION in the organisation’s success. From the professional cricketers Positive relationships with sponsors communities where we develop talent to the Active engagement with key fans and commercial partners that support stakeholders the game, CSA seeks to continually foster 67 Hubs and RPC’s these engagements. NATURAL CAPITAL Three of the 11 stadiums have energy- NATURAL CAPITAL resources mainly Cricket academies effi cient lighting include resources such as water and Borehole at Newlands Stadium energy. CSA appreciates that water is a and high-performance scarce commodity in South Africa and centres efforts are being made to save water where possible. 36 FINANCIAL CAPITAL

Financial capital resources are critical for CSA to fund its business activities and are largely raised through media rights, sponsorships, ICC distributions, investment income, government and Lotto grants, international gate ticket takings and other income.

CSA’s financial sustainability is material to the organisation’s long-term sustainability, especially when it comes to successfully implementing CSA’s cricket activities. CSA has successfully maintained its positive financial position each year through sponsorships, innovative financial management and investments. CSA’s fluctuating revenue model is primarily regulated through the organisation’s four-year planning and budget cycle.

PROGRESS AGAINST STRATEGIC OBJECTIVES Excellence Development Sustainability Transformation Brand promotion The Proteas men’s team Cricket development Cash reserves remain Additional financial Public interest in the Proteas maintained their excellent investment of firm closing at a investment in men’s team improved due ranking in the Test (#2) R341 million assisted total of R627million cricket assisted in to good performance and and ODI (#4) formats, with player development (2016/17: R740 million) transforming and player diversity, which in which boosts revenue. throughout the talent growing the game. turn improved international pipeline. gate taking revenues.

REVENUE MODEL

REVENUE STREAMS % 0,10 0,30

3,9 5 7,8

8 10 31

14 2018 2017 22,1

69

28

Media rights Sponsorship ICC distribution Champions League T20 (CLT20) Other income Government and Lotto grants

40 41 CSA’s revenue model depends largely on inbound media rights revenue is managed by agents and and merchandising, and venue hire for non-cricket MEMBER INCENTIVE SCORECARD tours (media rights and sponsorships) and ICC revenue is received in foreign currency (USD). During matches. Stadium revenues are dependent on the distributions, which make up 91% (2016/17: 81%) the financial year, media rights revenue of R1,0 billion cricketing season, which runs for six months per In addition to the Operating Model, CSA implemented of the organisation’s total revenue. CSA operates (2016/17: R210 million) was up on the comparative year. an enhanced Member incentive scorecard, a on a four-year financial cycle (refer to CSA’s outlook period. performance feedback system that rewards Members for more information), with annual budgets prepared ICC who exceed the basic delivery requirements of CSA’s and approved within each cycle. Our revenue SPONSORSHIPS Operating Model funding objectives. In the current model ensures we provide high quality, sustainable CSA has full membership of the ICC and therefore financial year, the scorecard was allocated into two services without compromising the long-term needs CSA sponsorships are divided into three categories receives dividends based on the ICC share model. sections, a compliance and incentive section, with of cricket development programmes. During the (shown below). During the financial year, sponsorship During the financial year, ICC distributions of the view to enhance the focus on strategic objectives 2017/18 cricket season, inbound tours included revenue of R206 million (2016/17: R191 million) was R132 million (2016/17: R149 million). for the year. Members were expected to achieve 60% Australia, Bangladesh, India and Zimbabwe. CSA 7.8% up on the comparative period. on the compliance section in order to be considered sells certain commercial rights and shares the OTHER for the incentive scoring section. Members self- revenue with its Members and stadium owners/ STADIUM REVENUES evaluate, providing supporting documentation to CSA operators. The balance of revenue of R131 million (2016/17: for validation. Three different incentives are payable: Although CSA does not own the 13 stadiums where R124 million) was mainly derived from the overall winners, select programme and functions, It is essential for CSA that the Proteas cricket activities take place, it does share the income Champions League T20 (CLT20) of R70 million and most improved Member. Proteas remain in the top tier of ranking generated by these stadiums according to an agreed (R70 million) and other income including international international cricket to generate as at 30 April model whereby CSA receives 20% of the income and gate ticket takings, investment income and forex During the year under review, the incentive scorecard maximum revenue from media the stadium operators (CSA’s Members) receive 80%. gains. showed an overall 15% increase in the scores across 2018 2017 rights and sponsorships. The CSA actively engages with these Members in respect all Members, with the points differential between Proteas’ performance over the Test rank #2 #1 of material upgrades required, as funding these OPERATING MODEL Members reducing. Nine Members scored above 2017/18 season resulted in the team ODI rank #4 #2 upgrades is a joint responsibility. CSA contributes 75% on the overall scorecard (2017: seven) and four being highly ranked in the Test and T20 rank #6 #3 to the stadiums’ maintenance costs annually, which CSA’s Strategic Operational Model focuses on Members (Boland, KZN, Northerns and Western ODI cricket formats (see alongside). include the upkeep of the field of play, spectator the way amateur and senior provincial cricket is Province) were the top performers with scores above seating and amenities, and the external precinct. funded and managed. The funding methodology 80%. MEDIA RIGHTS is activity-based and built around historical Stadiums earn income from a variety of sources, management, operational structures and operations OUTLOOK Media rights income is derived from international and including suite rentals, season tickets and match- driven by CSA’s Presidential Plan. Members’ cash domestic media rights sales. Domestically, CSA’s day tickets, hospitality packages, beverage sales, requirements are computed and funded over 14 • Implementing a franchise scorecard similar to broadcasting revenue is derived from Pay TV (DStv) rental earned from concessionary stands, stadium annual payments. CSA’s Operating Model. and Free-to-Air TV (SABC). Internationally, CSA’s naming rights, in-stadium advertising, licensing • Increasing attendance at and viewership of During the year under review, this model was domestic cricket events by enhancing the fan broadened to include initiatives such as RPCs experience. TITLE SPONSOR EVENT SPONSOR OFFICIAL SUPPLIER and Hubs, Player Performance Plans and Player Development Plans, which have assisted Members Proteas Men One Day International Series to focus resource allocation and spend effectively to ensure sustainability and growth.

Proteas Women International Test Series Period 1 to 12 Paid to Members monthly.

Franchises Paid after completion of administration procedures, such as confirming league fixtures and existence of facilities, Period 13 programmes and structures. T20 International Paid after the cricket season concludes and only once all reports and supporting information have been received PERIOD 14 and evaluated. This evaluation could result in partial payment or forfeiture of this amount. The Presidential Plan forms the basis of the funding methodology and aligns with CSA’s strategic objectives: excellence, development, sustainability, transformation and brand promotion.

42 43 HUMAN CAPITAL MEN’S PIPELINE 5 Human capital resources include permanent and fixed term staff (contracted players, team CRICKET SA “A” management and consultants) and independent contractors. Financial capital resources are Prepare Franchise cricketers for international competition Programme Prepare cricket players 4 to transition out of the game used to develop and upskill our cricket talent and staff, who are our ambassadors promoting Franchise 5 Cricket the CSA brand. Transformation is intertwined with all cricket and development focus areas as Prepare Senior Provincial players for National Academy & Emerging Team Programmes well as with administrative staff. Professional cricket 3 Senior Provincial Cricket 5 PROGRESS AGAINST STRATEGIC OBJECTIVES Provincial / Regional Academies / Club Cricket “Bottle Neck” – Retain and Develop 2 Tertiary Cricket / Future Cup / RPC & Hubs Excellence Development Sustainability Transformation Brand promotion SA U/19 Proteas men’s team remains R341 million committed to Continued focus on Good progress made Standard Bank are Talent Acceleration Programme in the top three rankings cricket development. cricket from grassroot to in the national team official sponsors for Test (#2) and ODI (#4) international level through representation – of CSA’s RPC Softball to hardball – Schools Cricket / RPC & Hubs formats. the cricket pipeline. 19.8% % black Programme in Attract, Retain and Develop African players and addition to the 1 Proteas women’s team Introduced the Standard Organisational design KFC Mini-Cricket / RPC & Hubs ranked 4th in the ICC World Bank RPC U17 National Week conducted to reflect on 52.1% black players. Proteas’ title sponsor. Cup. competition to increase organisational structure Men’s and women’s the number and quality and revise where individual players achieved of matches for players in necessary to enable international recognition. disadvantaged communities. delivery of CSA’s strategy.

WOMEN’S PIPELINE CRICKET ACTIVITIES 5 Creating access as well as talent identification, development and retention are the key CRICKET determinants of the cricket pipeline. These elements are explicitly linked to CSA’s strategic SA Emerging Team Prepare cricket players objectives and therefore material to the organisation’s very existence. The quality and success Prepare and monitor the holistic development players to transition out of the game for international competition 4 National Academy 5 of the national cricket teams, the Proteas (men and women), depends on CSA’s ability to Programme create access, identify, develop and retain talent throughout the cricket pipeline. National Camps Over and above CSA’s strategic objectives, cricket CRICKET PIPELINE MODEL 5 National Girls U19 and services also focuses on specific areas (‘silver Provincial Women’s Cricket bullets’) to ensure definite outcomes are achieved. The Cricket Pipeline Model’s objective is to create a Talent ID – Retain and Develop These silver bullets and outcomes are depicted on seamless and effective pathway for all players who 3 TAP Programme – Regional camps and festivals page 46 and are achieved throughout the cricket want to play the game by attracting players through (under 13 and 16) pipeline (see page 45). access to cricket and developing and retaining Men’s Pipeline “Grow the base” – Club Cricket / RPC & Hubs identified talent. This enables CSA to produce Attract, Retain and Develop 2 players (both men and women) that will make South Africa the best cricket nation worldwide through the Softball to hardball – Schools Cricket / RPC & Hubs effective implementation of the Player Performance Attract, Retain and Develop 1 Plan and by creating opportunities for a life after KFC Mini-Cricket / RPC & Hubs cricket.

44 45 SILVER BULLETS During the year under review, focus schools Areas of improvement include: governance, review increased by 14 to 30, ensuring the implementation and audit of the current system, and the effective Create a world class Outcome: High-Performance Environment that of the approved schools strategy by creating more implementation of the CSA schools’ growth strategy. Winning performances of the Proteas produces world class players centres of excellence for identified black players. A Various meetings and discussions were held by new focus school initiative aimed at enhancing the the task team. Certain obstacles, mainly around Outcome: development of girl’s cricket was launched at Queens information and data gathering, were resolved by Effective Pipeline Player • Improved performances at every level of the pipeline High School. The Momentum Proteas off-spinner, way of a stakeholder workshop. The School Quality Performance Plan • Representative winning teams Raisibe Ntozakhe, has been appointed as Head Index covers all 2 671 hardball cricket playing Coach. schools, including the 30 focus schools. In addition, 650 schools participated in the Coca-Cola T20 Integrated approach by CSA Outcome: The absence of school sport and adequate facilities Schools Challenge. Two focus schools, Graeme and • Improved implementation and accountability at CSA and Member level it’s Members to achieve the remains a challenge CSA faces in advancing talent College and Prestige College, qualified for the final vision and goals of CSA • Sustainable and effective programmes and initiatives in disadvantaged areas. To address this, CSA has weekend. Focus schools are cricket schools with developed a unique Cricket Resource Database established facilities and preferably a boarding Creative an effective Outcome: for schools and clubs, enabling the organisation to facility. These schools have at least 70% black CSA Facilities Plan to be presented work towards finalising a Facilities Plan to engage to Government Stakeholders Improve accessibility to play cricket in disadvantaged areas African students. government stakeholders on facility improvements Outcome: and access to cricket in disadvantaged areas. Proteas Women’s team finished in the top 4 in the ICC World CSA continues to engage with local authorities Accurate and effective data • Provide strategic direction, monitor progress and provide accurate reporting to Cup. on the importance of cricket facilities in benefiting management system various stakeholders Proteas Women players ranked in the top 10 bowling and disadvantaged communities through sports. • Effective player management batting rankings.

Club cricket Eight women umpires officiated the CSA Provincial Women’s A strong club cricket system provides playing Week in Bloemfontein – a first for CSA. The girls and women’s cricket pipeline are ACCESS opportunities to those within a community. The entrenched within CSA’s mainstream pipeline and second edition of the Multiply T20 Community Cup largely mirrors the mainstream pipeline in most Mini-cricket and schools cricket was held in Pretoria. Durbanville Cricket Club from IDENTIFICATION aspects. However, different challenges in attracting, To ensure a sustainable cricket pipeline, CSA must Western Province were crowned the 2017 Multiply growing and retaining talent required some attract talent at grassroots level through initiatives T20 Community Cup champions. The Momentum CSA has various talent identification initiatives in adaptations, as depicted in the women’s pipeline on like KFC Mini-Cricket and schools cricket. The National Club Championship, which is the 50 over place, from the Hubs and RPCs to tertiary cricket, page 45. further development of talented players identified tournament, was won by University of Pretoria that are well supported by its Talent Acceleration by KFC Mini-Cricket and schools cricket in (Tuks) Cricket Club. A new initiative aimed at further Programme (TAP) and High Performance Programme. ACCESS, TALENT IDENTIFICATION, DEVELOPMENT disadvantaged areas, are catered for through the boosting club cricket, the CSA Super Cup, was A system of franchise scouts plays a very important AND RETENTION CSA Hubs and RPCs, while the Standard Bank CSA introduced which is a once off T20 match between and successful role in the TAP, supported by the RPC programme further prepare these identified the winners of the Multiply T20 Community Cup system of provincial coaches (framework coaches) Access creation, talent identification, development players for participation in the CSA National Cricket and Momentum National Club Championship. Tuks and selectors to identify talent throughout its and retention are all interlinked, and CSA’s cricket Weeks. The Hubs and RPCs play a significant Cricket Club beat Durbanville Cricket Club by five pipeline. pipeline supports these critical steps throughout the role in accessing talent in disadvantaged areas, runs in the inaugural Super Cup match. pipeline. in partnership with schools, clubs and local Hubs and Standard Bank Regional Performance government. Women’s cricket Centres (RPCs) A challenge within the pipeline is the inherent Women’s cricket aims to create an environment The Hubs and Standard Bank RPCs remain bottleneck at the transition from modified cricket >2 million children to date have enjoyed exposure to KFC Mini- that attracts and retains women cricketers from a critical element of the cricket pipeline in to hardball, which requires more resources in Cricket. U13 to provincial level. The objective is for all improving the standards in cricket and increasing equipment, facilities, coaching, etc. Playing Members to have U13, U16, U19 and club cricket the number of cricket matches played in KFC Mini-Cricket celebrated its 35-year anniversary in July opportunities after this transition need to increase to structures in place. A CSA women’s provincial disadvantaged areas. 2017. ensure that talented players are retained within the competition is in place for participation on a senior cricket fold despite the higher costs associated with 30 focus schools with 70% black African students. cricket level. 67 Hubs and RPCs (2017: 63) their ongoing participation in cricket. 650 schools participated in the Coca-Cola T20 Schools 243 players from 63 Hubs and RPCs produced for various Challenge. The schools’ cricket system review will be a key national tournaments – up 43% focus area to ensure continued improvement.

46 47 The Hubs are central places for cricket among Tertiary cricket Development expenditure (%) Presidential Plan salaries disadvantaged schools. These local leagues help the Tertiary cricket is important in retaining and Youth Cricket 7.6 7.0 14.6 12.1 Club Cricket Hub coach identify players for further development. developing talented players who have finished 4.5 Hubs and RPCs The Hubs also compete in an inter-Hub league school. CSA has created a strong working 8.9 Senior Provincial Cricket and the RPC coach identifies the best players to relationship with all South African tertiary institutions 9.6 Transformation (facility upgrades) 5.2 13.8 Transformation be further developed at the RPC level in each age to access their facility infrastructure and coaches 11.4 Incentive – Operational Model 1.2 1.2 group. Each RPC team then plays in the highest and find talented players for its scholarship 1.6 Administrative costs 1.5 2018 2017 possible mainstream schools’ league (see details programme. These tertiary institutions provide 3.1 3.7 KFC Mini-Cricket R340 830 R300 679 Women’s Cricket on Momentum Friendship Games on page 68). This opportunities for scientific research around cricket 7.4 8.2 6.5 6.1 Provincial Academy programme continues to yield positive results and players, which aligns to CSA’s ‘excellence’ strategic Player Performance Plan other opportunities for individual players, with about objective. 2.7 2.6 Coach Education 10.4 8.3 63 talented players given opportunities to study at 4.2 4.6 Match Officials (Scorers and Umpires) 1.51.4 1.7 High Performance 1.2 1.3 2.0 some of South Africa’s top schools. This was made The annual Varsity Cricket Cup Tournament allows 11.2 11.6 Gate distribution – Members possible through different bursary platforms during students to compete against various universities the Standard Bank RPC programme’s 2017/18 nationwide. Some of the current Proteas who competitions held throughout1.4 the cricket season. Following a Board resolution to enhance Senior season, such as the Momentum 2 Excellence participated in this competition include Aiden CSA’s Centre of Excellence is used for some of these Provincial Cricket, key principles were identified (see Programme and the Sunfoil Education Trust. Markram and Lungi Ngidi. development programmes. The Hubs and RPCs below). (discussed on page 47) also assist in developing During the year under review, the Hubs and RPCs The second Varsity Cricket Tournament was talent through the pipeline. The support staff of each Senior Provincial team increased by four and one respectively, which successful, with the North West University lifting the must at least have the following to assist in achieving will enhance growth in grassroots cricket due to cup. A South African tertiary team was selected to To boost CSA’s retention abilities, the Senior the objectives of the Player Performance Plan: Head increased access to previously disadvantaged compete with the South African emerging and Sri Provincial cricket level was enhanced to make it Coach, Assistant Coach and Trainer/Physiotherapist. communities. This growth brings the total of Hubs to Lankan academy teams in a triangular series at the more professional. The Senior Provincial cricket 55 and RPCs to 12. CSA is present in all but one of CSA Centre of Excellence, where the South African tournament will no longer have reference to semi- The Africa T20 Cup will increase to 20 teams, four the country’s 52 districts. tertiary team beat the South African emerging team professionals and each of the 13 Senior Provincial groups of five teams played over the same four in the final. teams will be awarded 11 Senior Provincial contracts, weekends with the finals on the fifth weekend. Each Talent Acceleration Programme including additional benefits such as medical aid team will play four matches in the preliminary rounds. TAP camps test player cricket skills, acumen and DEVELOPMENT AND RETENTION and bursary options. These players receive life skills The 20 teams will be made up of 13 Senior Provincial fitness levels. About 175 players are introduced to training as they advance through the cricket pipeline. teams, as well as Mpumalanga and Limpopo, and the TAP annually within the U17 and U19 age groups. To retain talented players, it is imperative that CSA five teams from the rest of Africa. From May 2018, During the year under review, six franchises’ regional continues to develop, monitor and measure talent. Mpumalanga and Limpopo will be given a grant U17 TAP camps were held, exposing 150 identified A total of R341 million (2016/17: R301 million) was Principles introduced to enhance Senior to contract 15 players each, to retain and prepare players to the programme. The top 20 identified invested in cricket development across all levels of Provincial cricket players for participation in the 2018 Africa T20 Cup. players were invited to a national camp as part of the cricket pipeline (see pie chart on page 49 for • Expanded Africa T20 to include Mpumalanga and Limpopo the ICC U19 World Cup preparation and monitoring investment categories). During the year under review, who may contract 15 senior provincial players each. To ensure that CSA’s talent is supported by qualified cycle. Following these programmes, 15 players were several new players from the domestic system and suitable coaches and umpires, CSA continues to • Addressed the value of senior provincial contracts by making selected to represent South Africa at the U19 level. excelled at an international level and gained global invest in upskilling its coaches and umpires through them fully professional. The U19 team finished fifth in the 2018 ICC U19 recognition. This includes Junior Dala, Christian the Elite Coach Development programme and the World Cup, a significant improvement from the 2016 Jonker, Robbie Frylinck and Heinrich Klaasen, who • Addressed the number of senior provincial contracts, with a Hubs and RPC Coach Acceleration programme at ICC U19 World Cup. Three players, Raynard van made their debuts for the Proteas during the year in suggested number of eleven (11) contracts per affiliate. national level as well as the Coach Acceleration Tonder, Wandile Makwetu and Gerald Coetzee, were review. CSA continues to focus on the challenge of • Term of contracts have a more robust identification process. Programmes at Provincial Level (see page 52). selected for the ICC U19 team of the tournament. developing black African batsmen. • Implemented the Player Performance Plan to provide focused player development. CSA Centre of Excellence CSA also hosted a national U16 TAP camp focusing CSA has various development programmes and CSA has its own Centre of Excellence, which is the the development of black African players. Players initiatives to produce talented individuals as • Improved quality of the coaches, leadership and player base for the Proteas, the SA “A” National Academy are assessed and could be invited to the Regional they move through the cricket pipeline. These management skills. and SA U19 teams’ integrated development U17 camps and or the National U17 Camp. They include Provincial Academies, National High- • Appointment and retention of quality coaches. programme. The Centre of Excellence facilities are also given tools to improve their game. This Performance programmes (discussed on page 50), • Addressed the coaching support staff and prioritised the include lecture rooms, an indoor practice arena, particular camp has shown remarkable results since the Player Performance Plan and associated implementation of the Player Performance Plan. outdoor net facilities, playing fields, accommodation, its inception six years ago. Player Development Plans, underscored by cricket medical and conditioning facilities.

48 49 Provincial Academies three players were included in the ICC Team of the This needs analysis is conducted on each identified The Future Cup provides a high level The Provincial Academy system aims to develop Tournament. Following the 2018 World Cup, the player to determine their social and economic of playing exposure to the selected identified players holistically. The programme focus of the U19 programme is to ensure that players backgrounds, strengths and development areas. An entered its third year with greater anticipation of the are exposed to the best competition possible at this individual PDP is drawn up from this analysis with representative. The competition is integral first intake completing their three-year programme level to prepare for the U19 World Cup in 2020. It is resources to be to be actioned that address players’ to the identification of talent beneath the in December 2018. CSA approached the Make a also an important area of development in preparing performance gaps. This is especially aimed at Senior Provincial cricket for players from Difference (MAD) Leadership Foundation to conduct the cricketers for senior provincial and franchise players from disadvantaged backgrounds. different spheres of our cricket pipeline a needs analysis on all players to ensure that they cricket as well as in the succession planning for system – rural, universities and Provincial are ready to exit the programme more meaningfully. the Proteas. Tour benefits include opportunities The Kolpak talent drain Twenty-six players were offered Senior Provincial for players to test their strengths and skills against Currently, 13 South African cricketers have signed Academies. contracts for the 2018/19 season and their Personal some of the best players in the world and in different Kolpak agreements (2017: 11 players). Although Development Plan portfolios will now be overseen conditions. Regional camps are held nationally to the Kolpak talent drain remains a major concern Eddie Khoza, CSA Cricket Services Manager by SACA. The Knights Franchise Academy team prepare for upcoming tours. for CSA, the depth of talent in the cricket pipeline had successful competitions during the Franchise is encouraging, as shown by the performance of 3-Day and 1-Day tournaments held in Oudtshoorn SA “A” Team young talent in the Proteas team during the 2017/18 Competition Targeted players and Potchefstroom respectively. The selected SA The SA “A” Team serves an important purpose in the season. Schools cricket Boys and girls Franchise Academy XI participated at the Future talent pipeline as these players are effectively the RPC U17 National Week (new) Boys Cup held in Kimberly against the selected University next generation of national men’s players. The aim of The Board of Directors resolved that Kolpak players Club cricket Men Sports South Africa (USSA) XI and SA Rural XI. the SA “A” programme is to ensure that players are would be allowed to play in the franchise system, Senior Provincial Men and Women exposed to the best competition possible at this level but this will be limited to two Kolpak players per Powerade National Academy to replicate the pressures of international cricket. In franchise, and these players will be paid from the Domestic franchise the year under review, eight players from the 2017 franchise’s own funds. – Sunfoil 4-day series Men – Momentum 1-day cup Men The Powerade National Academy SA “A” squad have made their debut for the Proteas across the three formats. Cricket competitions and tournaments – T20 Challenge Men programme forms a very strategic part For players to continually improve, it is important for Domestic senior provincial competitions of our developmental pipeline and has as Player Performance Plan CSA to stage various competitions and tournaments – Sunfoil 3-day cup Men its aim, to prepare young players for the To ensure continued growth, improvement and throughout the year. This also mitigates, to a certain – Provincial 1-day cup Men demands of professional cricket. retention, player performance must be developed, extent, the bottleneck effect discussed on page 46, – Africa T20 cup Men monitored and measured. The Player Performance as CSA ensures that these competitions and Future Cup Men CSA General Manager: Cricket, Corrie van Zyl Plan (PPP) is a practical plan that aims to provide tournaments are enjoyed across all levels of cricket individual players who show the right cricket for young, senior and professional players (men and Franchise cricket competition attributes and mental acumen with the best possible women). CSA’s Franchise cricket competition enables the CSA’s National Academy programme’s goal is to opportunities to perform at every level within the six franchise teams to go head-to-head as they successfully transition players from senior provincial pipeline. It also aims to increase the pool of players Through additional development sponsorship competed for the glory of being crowned the RAM cricket into professional cricket. This programme at a professional level, increase the pool of players from Standard Bank, CSA introduced an RPC U17 SLAM T20 Challenge Sunfoil First-Class Series focuses on the high-performance development of ready for national selection, and create a strong National Week to increase matches and improve and Momentum One Day Cup winners. Due to the players at senior provincial and franchise levels base with a sustainable and increased flow of quality of matches for players in disadvantaged postponement of the T20 Global League, the RAM who have the potential to play professional and successful performing players. The plan also defines communities. SLAM competition (normally held over March and international cricket. Development outcomes include: the roles and responsibilities of key role players April) was played from 10 November 2017 to 16 • Specific skill development. within the pipeline. The PPP saw its first full year of The T20 triangular tournament (Future Cup) December 2017. The availability of the national team • Increased tactical awareness. implementation, but because of the late introduction between the South Africa Academy X1, South Africa players made the 2017 event a resounding success. • Increased mental conditioning. of the Coaching Framework in May 2017, the PPP Rural XI and the USSA XI is one of CSA’s talent • Optimal strength and fitness conditioning. was not implemented to its full potential for the identification opportunities for talent scouts to feed CSA Franchise Cricket • Personal life skills growth. current financial year. However, in the 2018/19 new players into the organisation’s senior provincial • Dual career approach to life. season, the plan is due to gain more momentum structures. The key feature of this tournament is the • Cape Cobras •3 Dolphins • Improved emotional intelligence. and players are expected to be given the required mainstreaming of all cricket talent within the age attention to their development. group of 20 to 24 years. Each team is composed of • Knights •3 Lions SA U19 the top players from the CSA Franchise Academies, The SA U19 team finished fifth overall at the Individual Player Development Plans (PDP) are at the CSA Rural and USSA “A” Weeks, which were • Titans •3 Warriors February 2018 ICC World Cup in New Zealand and core of the PPP and are based on a needs analysis. concluded during the season.

50 51 Coaches diversity, leadership and management principles was questionnaires. The results of these activities individuals. The remuneration model assists CSA CSA’s Coach Education Programme helps to create introduced for elite coaches. A similar course was culminated in the development of a succession- with this process and includes a benchmarking a clear coaching philosophy for cricket, ensuring also introduced at a lower NQF level for coaches who planning solution as well as better alignment of exercise to determine whether salaries are that coaches are kept abreast of the latest global aspire to a level III course. This modular course will employees’ roles and responsibilities. comparable with companies in the same industry technical developments. In the year under review, be used as the criterion for coaches who apply to be and of similar size and turnover. we published the CSA Coaching Philosophy, a best part of the level III course going forward. Employee wellness programme practice, player-centred approach to coaching. This CSA has partnered with ICAS (Independent Performance management approach ensures that coaching levels are cutting- Umpires Counselling and Advisory Service) for its employee It is important to manage staff to ensure that edge and standardised to deliver competent coaches CSA wants to attract, develop and retain world-class wellness programme, which is available to permanent their work performance remains on track and that throughout the pipeline. CSA offers various certificate match officials for all levels of the game. The Umpire staff and their immediate family. This programme their personal career aspirations are achievable. qualifications from introductory levels to Level 4 Acceleration Programme creates opportunities ensures that employees are kept informed about CSA’s performance management is aligned to the as a National Coaching Certificate for national and and personal development plans for first class ways to take ownership of their wellness and offers organisation’s strategic objectives, and everyone professional cricket. and emerging umpires. The challenge remains in support to manage any problems. Based on the has their specific key performance indicators (KPIs) attracting black African umpires, which is being feedback from ICAS, the prevalent issues facing that are monitored and measured bi-annually. A full time high-performance coaching structure, addressed by tapping into the South African Schools employees include relationship issues and stress. Where under-performance is identified, employees which includes a full-time SA “A” Head Coach, Cricket body and providing opportunities at all levels are encouraged to address their shortcomings to National Academy Head Coach and a SA U19 Head of the umpire pathway to accelerate representation. Remuneration narrow their performance gap. Additional training and Coach, was implemented in the year under review to CSA appreciates the importance of fair development is also offered to assist employees with ensure a strong base from which player development CSA currently has 838 umpires, 34.6% of which are black remuneration to retain high-performing talented their development needs. can effectively be managed. This structure will also African. 4 National Elite Panel Umpires have been included in act as a link between the Proteas team and the High- the ICC Emerging Panel. Performance Programme. Additionally, a full-time assistant to the National Women’s Team Head Coach was approved and appointed. CSA held its annual fitness assessment workshop for its elite panel of umpires. This workshop included A coaching framework was implemented in May 2017 an individualised training programme with various and 60 coaches were appointed on a full-time basis topics such as fitness assessments, nutrition and to assist in preparing our elite players in the various recovery techniques, and financial and strategy provincial age group teams and to address players’ planning. The second fitness training was conducted performance gaps within the cricket pipeline. The in April 2018, and the reports revealed that there was appointed coaching positions per Member are: Senior an improvement from the previous year. Seven new Women and U19, Academy and U19, U17, U15, U13 umpires from the elite panel were also tested, and and U11 Head Coaches. The coaching framework they showed a high standard of fitness. One area of coaches’ role provides support to all identified players concern is that most of the umpires need to do core and ensures that their development as cricketers is strength exercises. holistic to ensure that players can meet and exceed performance benchmarks at every level. CSA ADMINISTRATION

The annual coaches conference for the 2017/18 Organisational design season’s theme was ‘Masenzeni’ (‘let’s do it’). This Following extensive changes within CSA over conference focused on implementing CSA’s strategy the past ten years, the complexities of cricket and vision as the structures are now firmly in place. administration have grown, and the Board requested a review of CSA’s organisational structure and The PitchVision Coach of the Year award continues competencies to ensure that CSA’s administration is to be a major incentive for coaches operating at still fit for purpose to deliver on CSA’s strategy. This Franchise, Senior Provincial and Hubs level. CSA review includes all permanent CSA staff but excludes will grow the Coach of the Year initiative to the the fixed term staff and underlying structure of the framework coaches from the 2018/19 season. two national teams. The review activities included After the domestic and national-team performance an individual workload measurement exercise as reviews, an accredited modular course addressing well as the completion of self-assessment skills

52 53 TRANSFORMATION Cricket South Africa is committed to the delivery Transformation Indaba as well as diversity experts. Upon reflection, not of the following: CSA held its fourth National Transformation Indaba all the 2013 resolutions were achieved. However, in April 2018. The purpose of this Indaba was to good progress was made that has led to meaningful Transformation is woven into the fabric • Demographically representative entities and democratic of CSA’s operations and extends beyond structures. reflect on the resolutions committed to in 2013, improvement in governance, administration, the cricket field to include our staff, fans, revise these accordingly, and note the progress increased participation and improved playing • Development of cricketers and our human capital. made over five years. The Indaba was led by Mr standards. suppliers and communities. Alongside • Equitable allocation of resources and equity across the board. Chris Nenzani, CSA’s President and comprised of excellence, development, sustainability and 196 delegates from its Members, Board of Directors This progress provides an encouraging platform for • Ethos of dignity and equality. brand promotion, transformation is a non- and key stakeholders, including SASCOC and SRSA the new resolutions to gain further traction. negotiable part of our strategic objectives. • A culture of sustainability, non-racialism and access for all. • Recognition of the history of all South African cricket. 2013 Indaba resolutions and progress: Transformation approach CSA has a holistic approach to transformation, based on six pillars and outcomes as depicted below. 2013 Indaba resolution categories Progress to date CSA introduced a new Corporate Governance Regime and Operational Model, bringing Increase facilities and participation at all levels ACCESS Governance world-class structures and processes into the organisation. All Member MoI’s are now Skills and capacity World-class events, excellent player pathway structure aligned to CSA’s MoI. Annual monitoring of the EPG scorecard is in place. demographic profile Representative of a universal South African society CSA’s procurement from broad-based businesses is above 80%, exceeding the 60% target performance Within Top 3 rankings in all global events Procurement and appointment of staff set. B-BBEE is monitored and measured annually and since the 2015/16 reporting period, government priorities Social cohesion and global sports destination CSA has maintained a Level 4 rating. Ongoing staff training and development is in place. good governance Accountable structures at all levels All professional cricketers (18 in total) have contracts in place and good progress was made Professional cricket in accelerating the growth and quality of umpires. Black African players in franchise and Transformation within cricket amateur and professional levels. Transformation provincial teams remains a focus. Transformation within cricket is a dynamic process actions are based on: performance (all talent Good progress was made in accelerating black African players in representative teams at as depicted below and it aligns with CSA’s Cricket matters), fairness (reflective scrutiny), opportunity all levels and significant progress was made in integrating women’s cricket programmes Pipeline Model (see page 45) in that it looks to (quality of opportunity) and inclusion (broaden the and increasing the number of competitions. The Hubs and Standard Bank RPC programmes Amateur cricket identify, develop and retain talented players at talent pool). were all well received and are fostering talent for the cricket pipeline. Disability programmes have not gained momentum and remain a focus. Engagement with SALGA Amateur: Convert potential to talent (facility maintenance) and DBE (cricket schools development in townships) is ongoing. Professional: In line with the Game Plan Two volumes of a four-part series on the history of cricket from 1795 to 2018 have been released and a TV series on the history of cricket was televised in 2016 and 2017. The laws History and Legacy of cricket have been translated, but not published, into isiXhosa. Plans for a National Cricket Skills Museum will be submitted later. Identification The operational model and incentive scorecard were successfully implemented, and CSA is closely monitoring progress against these tools. The bilateral series was successfully Funding renegotiated with all ICC Members and a title sponsor (SBSA) was secured for the Proteas men’s team. Active engagement with current sponsors is ongoing.

Amateur: Follow the talent Effective Amateur: Hone talent sets Succession Transformation High- 2018 Indaba resolutions Professional: Nurture ‘Game Plan’ Plans Performance Professional: Create ‘shadow’ requirements Programme squads Following the Indaba, CSA adopted new resolutions clustered around three specific categories:governance, professional cricket and amateur cricket, which are tabled on page 56. To ensure that these resolutions are achieved, each category will be monitored regularly with feedback being provided to the Board on a regular basis. Winning

Amateur: Develop ‘art’ of winning Professional: Create ‘winning formula’ 54 55 2018 Indaba did not meet agreed targets, National History of cricket: Divided country resolution categories Specific focus areas the average representation men’s team Improving the alignment and accountability and robust decision making. across 37 matches in all transformation Reconsidering CSA’s director rotation policy. three formats was 19.8% for targets (average Revising the appointment of non-independent directors to increase the Board’s wealth of knowledge, talent black African players and minimum): 52.1% for black players in pool and gender representation – Targeted 20% black Governance general. Factors such as Assessing the organisation to address the skills gap and determine the feasibility of centralising/outsourcing African players vs injuries, player suspensions actual 19.8% certain activities. and loss of form from some Reassessing the current Operational Model to determine possible improvements. players contributed to the – Targeted 54% black players vs actual decline in black on-field Benchmarking CSA’s transformation progress across all B-BBEE pillars. 52.1% representation. All teams met Implementing a high-performance feeder programme to sustain performance in women’s cricket at a their transformation targets in national level. Franchise and Senior Provincial cricket. Professional cricket Developing black African players, batsmen in particular. Creating a unique SA “A” Team culture based on CSA’s culture to enhance team cohesion and performance. Cricket inclusion Following the publication of volume one (‘Cricket & Women’s cricket has gained significant profiling and Conquest’) of a four-part series, volume two (‘Divided Enhancing the Member Scorecard and introducing a Franchise Scorecard. media coverage over the past couple of years as the Country’) was released in April 2018. ‘Divided Increasing participation, representation and quality of performance against benchmarks. women’s team continue to excel on the field. During Country’ continues from ‘Cricket & Conquest’, which Amateur cricket Emphasising women’s and disability cricket to broaden access to the cricket pipeline. the year under review, CSA improved cricket support rewrote the foundational narratives of cricket in Developing an Integrated Schools’ Cricket Strategy and engaging with relevant government authorities. structures for advancing women’s cricket and revised southern Africa between 1795 and 1914. This second their remuneration structures to further incentivise volume attempts to paint a new picture of South earnings within the team. In addition, 14 women African cricket from 1914 to the 1950s. It covers Eminent Persons Group CSA has undertaken a process to understand the players now have professional contracts to retain how black cricketers played and fought in Egypt and The Minister of Sport and Recreation South Africa, possible outcomes of measuring its barometer talent in South Africa. Palestine during World War I and made the first tour Ms Tokozile Xasa, and the Chairperson of the forecasts against the national transformation targets to India in 1922, as well as how Dave Noarse scored Eminent Persons Group (EPG) Transformation to determine where the gaps are and what actions Increasing inclusion in cricket for people with a double century at 53 and how women began in Sport, Mr Happy Ntshingila, released the fifth need to be implemented where feasible. The Sports disabilities (deaf, blind and intellectually impaired competitive cricket. It inverts the one-dimensional EPG report in May 2018. The EPG Transformation Minister will be conducting one-on-one engagements players) remains a challenge as targets have narratives of previous general histories of cricket Report details transformation targets set by various with national federations to discuss any gaps not been met. During the year under review, to during a crucial and complex period of the new federations and shows whether they have delivered identified as well as proposed remedies. CSA also address this challenge, an inclusion programme country’s development to show that cricket has an on their own set targets entered between SRSA and continues to actively engage with the Ministry on was implemented throughout the Members, which infinitely richer past than has been recoded to date. various sport federations. transformation progress. should increase inclusion opportunities for disabled players. Facility upgrades The EPG Report made 46 recommendations in CSA’s performance against the 2017 national Facility development and maintenance in the the areas of schools (12), SRSA/SASCOC (23) and transformation targets was encouraging, with an Franchise cricket townships remains a key focus for CSA as this will Sports Federations (11), of which 12 remain focus overall score of 62%* for 2017 (2016/17: 52%). The An analysis of domestic franchise cricket across boost the cricket talent pipeline with talented quality areas for CSA and are largely focused on schools current data capturing programme continues to all three formats is reflected in the table below. It players from disadvantaged communities. CSA cricket. General recommendations made by SRSA ensure improved quality of information and accurate covers selection, quality of opportunity and national committed about R4 million (2017: R6 million) for this and SASCOC that have a direct impact on CSA and inputs. Due to the data clean up, the senior schools benchmark performance. All indicators show an development, which was allocated as follows: its Members going forward include: showed a decline against the national transformation increase in participation. targets, however in primary schools and clubs, CSA • R2,1 million on new facilities at the feeder schools. • Introducing a penalty system for non-compliance exceeded targets. • R1,3 million on a multi-sport Facility (Botshabelo). with national transformation targets. Generic Black % Black African % • R400 000 on a cricket oval at Akofang school. • Devising measures to gauge and track national Player targets 2018 2017 2018 2017 and provincial administration and governance CSA’s Board of Directors set official transformation Selection 58 56 22 20 Sponsorships quality. targets for the national men’s team over the cricket CSA appreciates that a difference in the South Quality of opportunity 100 63 100 48 • Monitoring federation charter performance against season (page 57). Although the Proteas men’s team Africa’s cricket landscape cannot be made national transformation targets and performance National benchmark at national team level if the inequalities of the performance 80 43 50 15 against self-set barometer targets. * To be confirmed or amended by EPG in November 2018. foundation feeder system are not addressed.

56 57 Against this backdrop, CSA is pleased to announce representative teams. Forty newly selected players activities on offer at CSA and its six franchises its partnership with Standard Bank as it launched were provided with sponsored kit from New Balance. (Cobras, Lions, Dolphins, Knights, Titans and the RPC U17 National Week initiative that aims Warriors). This includes activations, content creation, to transform cricket by developing and nurturing B-BBEE pre-match interviews and other marketing duties. The the budding cricket potential in South Africa. remaining three graduates are based at CSA’s head Standard Bank is sponsoring 12 RPC programmes Pillars 2017/18 2016/17 Weighting office, and upskill in areas like finance, IT and internal nationwide (focusing on age groups between 13 audit. This internship programme was enhanced in Management control 13.82 12.31 20.00 and 18 years) to grow the pipeline of future stars. the period under review by partnering with GetReady The RPC week also provides 64 coaches and Skills development 18.27 20.78 25.00 to offer mentorship, innovation and problem-solving administrators from around the country with an skills. Enterprise and supplier 46.92 45.68 50.00 opportunity to get best practice in their various development fields. Socioeconomic Enterprise and supplier development: CSA’s score development 5.00 5.00 5.00 improved moderately and edged closer to the full 50 Total score 84.01 83.77 100.00 points available. To increase this score, CSA would This partnership ensures that there’s need to increase its spend with suppliers that are continuous development and maintenance B-BBEE Level 4 4 more than 30% black-owned. of effective high-performance programmes B-BBEE is an important element of CSA’s broader Socioeconomic development: CSA continued to and cricket structures from grassroots right transformation strategy. During the year under achieve full points under this pillar. Further details through to senior cricket. review, CSA maintained its externally verified on CSA’s socioeconomic development initiatives are B-BBEE Level 4 rating. The overall score increased detailed on page 67. Jenny Lyn Pheiffer: Executive Head, Group Brand and marginally to 84.01 (2016/17: 83.77), with scores Sponsorship at Standard Bank Group for individual pillars tabled above. An additional six OUTLOOK points is required to achieve a Level 3 rating and management continues to explore ways of improving • Growing the representation of black African Budding young cricketers from previously CSA’s score. CSA’s current employment equity plan batsmen across the cricket pipeline. disadvantaged areas in need of facilities and expires on 31 October 2018 and management will be • Continuing to promote women’s cricket. coaching will now be able to fulfil their true potential drafting a new plan for submission to the Department • Improving cricket access in disadvantaged and turn their dreams into reality. of Labour. communities. • Developing the high-performance players as the During the year under review, 144 talented young Management control: This score improved slightly feeder for the national team. cricketers countrywide participated in this initiative due to black executive appointments and the • Focusing on the 2018 Indaba resolutions, in Pretoria in areas that include Hammanskraal, total number of black employees showed an particularly within professional and amateur Mamelodi and Tuks. There are currently 12 RPCs improvement. cricket levels. across the country: • 1 152 players – an average of 96 players per RPC. Skills development: The decrease in the score is as • 96 feeder schools. result of a decreased spend in Skills development in • 36 full time coaches. the organisation. CSA encourages its staff to further their studies to ensure their short and long-term 63 talented players were afforded opportunities to career aspirations are met, resulting in employees study at some of the top schools. This was made who are competent, motivated and ambassadors possible through different bursary platforms during for CSA. Training and development takes the the 2017/18 season of the Standard Bank RPC form of short or long-term courses, seminars and programme. This process has allowed for junior workshops. provincial sides to be selected and receive bursaries to develop further. The second year of CSA’s internship graduate programme is underway and continues to gain New Balance kit sponsorship: During the year under traction and show benefits. This programme provides review, 243 players (2016/17: 138 players) from opportunities for nine graduates – six in media and the Hubs and RPCs were selected for the various communications – to upskill themselves in various

58 59 MANUFACTURED CAPITAL

Manufactured capital resources include CSA’s new head office building which it owns, leased premises (CSA’s High-Performance Centre), cricket stadiums as well as the Hubs and RPCs and academies that support CSA’s cricket activities.

CSA’s stadiums, High-Performance Centres, Hubs and RPCs and academies form the bricks and mortar through which revenue is generated and cricketers are afforded the opportunities to develop their talents to full potential, from grassroots to international levels. PROGRESS AGAINST STRATEGIC OBJECTIVES

Development and Excellence Sustainability Transformation Brand promotion Stadiums, High-Performance Significant investment carried The new CSA building is likely to Refurbished stadiums will attract Centres, Hubs and RPCs as out in stadium upgrades transform and build our brand. more fans and improve CSA’s well as academies assist in to address aging stadium brand profile. continuously improving players’ infrastructure and introduce abilities. latest technologies. Boland Park Stadium in Paarl

Eurolux Boland Park is an important cricket ground in the local, regional and national context. This STADIUM UPGRADES was recognised by the Drakenstein local municipality when it provided a substantial grant to Cricket Boland for upgrading the stadium. The upgrades entailed a total revamp of the change-rooms, In pursuit of excellence, CSA seeks to deliver world Looking ahead, CSA are considering designs and presidential and other suites, the media centre and the floodlights. The total cost of upgrades was class and professionally managed events. Every feature requirements to be implemented over the approximately R32 million. These upgrades, the first since the 2003 World Cup, improved critical stadium infrastructure is expected to be maintained next two years. Going forward improvements will be infrastructure to world-class standards and provides Cricket Boland with the platform to extract even or upgraded to the level necessary to support this made to Wi-Fi / signal reach / crowd flow / ticketing greater value from its assets. Going forward, these upgrades will ensure that Eurolux Boland Park is long-term objective. systems, general maintenance etc. to enhance the well placed to meet its mission and obligations to the game of cricket and the local community. fan experience at our respective stadiums CSA earmarked more than R384 million to be spent over the course of the next three years including the The return on the above investment will be both 2017/18 financial year. Over R195 million was spent financial and non-financial benefits and will HIGH-PERFORMANCE CENTRES, ACADEMIES AND HEAD OFFICE during the current financial year on upgrades such ensure the future sustainability of our stadiums’ HUBS AND RPCS as cutting-edge artificial lighting systems, advanced infrastructure and improved match day operations CSA moved into its new head office building in sports field technology and LED scoreboards, and and enhanced fan experience. CSA’s High-Performance Centres, academies, October 2017. This building is owned by CSA and change-room and media centre revamps, bringing and Hubs and RPCs form an important strategic besides housing all staff, it is extensively used South African stadia up to global standards and Beyond the phenomenal batting and bowling objective in ensuring CSA can produce high-calibre for media briefings, branding discussions, board ensuring match-readiness. performances, and the chance to see local and players throughout its cricket pipeline in state-of- meetings and day-to-day meetings. international cricket stars in action, fans will also the-art centres. This also enables CSA to progress CSA ensures safety before profits and as such all enjoy world-class sports arena facilities. against strategic objectives such as excellence and OUTLOOK venues must comply with the Safety At Sports & development. Recreational Events Act (SASREA), 2010. This entails • Standardising stadium signage. obtaining various certificates of compliance with • Continuing the stadium upgrade project. regard to structural compliance, electrical standards, • Reviewing the food and beverage offering at the health and safety, disaster management, and more. stadiums.

60 61 INTELLECTUAL CAPITAL parameters. Various levels of misconduct are Brand campaigns stipulated with relevant sanctions. During the year The organisation’s three brand and marketing under review there were no match-fixing incidents, campaigns that profile CSA and the men’s and Intellectual capital resources include CSA’s various brands, most notably the Proteas, as which enhanced CSA’s image across the cricket women’s national teams are: That’s our Game, strategic intellectual capital. CSA’s branding and communication process gives a voice to world. #ProteaFire and #Alwaysrising. the organisation, promotes CSA’s vision and grows CSA’s exposure to attract sponsors and partners to further boost financial capital. Additionally, the wealth of knowledge in our human capital and data systems ensure optimal processes and efficiencies. “#ProteaFire” showcases some of the Proteas’ values to position our men’s “#Alwaysrising” encapsulates how national cricket team in the public The brand and reputation of CSA is material to its sustainability and is linked to both its financial wellbeing and CSA is transforming cricket by taking eye. The team values for #ProteaFire the development of cricket in the country. CSA is resilient in reinventing and growing its brand. “That’s our Game” is a rallying cry for women’s cricket development seriously include: South Africans to take ownership of, and providing more opportunities for and celebrate, the game they love. CSA • Resilience – “Resilience is a state of girls and women to play and enjoy the PROGRESS AGAINST STRATEGIC OBJECTIVES uses the campaign to remind South mind – a choice.” (Ahmed Kathrada) game. The Proteas women’s team Africans why they love the sport and • Adaptability represents our country professionally Development and to celebrate the moments that truly • Truth and inspires girls to take up the sport. Excellence Sustainability Transformation Brand promotion show their collective love for all things • Fun The champion of the #AlwaysRising cricket. It also extends beyond CSA’s campaign was an emotive advert The KFC Mini-Cricket programme Appointed a new digital content Continued to highlight CSA’s Maintained good relations with The purpose of the campaign is to get efforts to build excitement around the designed to increase public awareness was awarded the most creative manager to assist the company commitment to transformation sponsors to further promote CSA South Africans to identify and reconnect sport; it invites all our stakeholders to of a team that never backs down but is activation of the year at the 2018 to keep up with the ever- and success through the cricket and the Proteas brand. with the Proteas. We need to instil a join the federation in pushing the love #AlwaysRising, showing grit and joy in Industry Sports Awards. changing trends in the digital pipeline. sense of pride in the Proteas in South for the game forward. every game. media space. Africans, with a strong call to action to Launched the Standard Bank Excellent brand campaigns that show their support at all levels of play. RPC U17 National Week to continue to profile CSA. profile CSA’s commitment to cricket transformation and CSA’s Brand Properties growth of the game. OVERVIEW OF BRANDS AND MARKETING CAMPAIGNS CRICKET SOUTH AFRICA NATIONAL FLAGSHIP BRANDS DOMESTIC BRANDS FAN ENGAGEMENT highlighted events

BRAND REPUTATION AND MARKETING identify and develop local talent. The Proteas men’s team performed with distinction in the recently Brand reputation concluded 2017/18 season, and had successful CSA’S financial sustainability depends on realising Test series wins over Australia, Bangladesh, India ZAC brand value for stakeholders, including sponsors, and Zimbabwe. The Proteas women’s side held fans and players. CSA’s brand strength is evident in their own against a strong Indian side, a positive Sponsor Partnered the year-on-year sponsorships it attracts from new indication for the future of women’s cricket in South Properties and renewed commercial agreements as well as the Africa. Momentum Friendship Games KFC Mini-Cricket quality of its sponsors. There are two brands within Coca-Cola National Weeks CSA: the Proteas national teams (men and women) Keeping cricket clean is a vital part of maintaining Sunfoil Education Trust M2E (Momentum 2 Excellence) and CSA. CSA’s reputation. CSA has an Anti-Corruption Code for players and support personnel and is The Freedom Trophy CSA maintains its reputation through established committed to taking necessary steps to prevent relationships with the media, and fair and balanced corrupt practices that undermine cricket’s integrity. In reporting across all platforms. A successful national addition, CSA’s Rules and Code of Conduct ensure team also reflects well on CSA and its ability to that competitions are conducted with disciplined

62 63 Marketing pipeline as well as encouraging supporters to attend SOCIAL AND RELATIONSHIP CAPITAL CSA’s marketing strategy ensures that the matches and purchase merchandise. organisation communicates effectively to all internal and external stakeholders. Internally, CSA’s vision, Women’s cricket continues to gain traction and is Social and relationship capital resources include the various stakeholders who play a mission, values and strategy are reinforced, which making a valuable contribution to CSA’s brand. CSA valuable role in the organisation’s success. From the communities where we develop talent enables employees to be proud CSA ambassadors. is encouraged by the excellent performance of the Externally, CSA informs its various stakeholders Proteas women’s team over the past two years and to the fans and commercial partners that support the game, CSA seeks to continually foster of the organisation’s progress against its strategic appreciates the value of increasing the team’s profile these engagements. objectives: excellence, development, transformation, to realise untapped brand resources. A successful sustainability and brand promotion. Effective initiative of profiling the team includes the “T20 marketing and brand promotion increases awareness International Double-Header” competition where and branding, targets new and old markets, and the Proteas men’s and women’s national teams play PROGRESS AGAINST STRATEGIC OBJECTIVES ensures that the marketing objectives are aligned against an international team. With regular live TV with the sponsors. This, in turn, results in sustainable coverage and bigger crowds, it provides the ideal Excellence Development Sustainability Transformation Brand promotion revenue generation. platform for our women’s team to raise its profile and Maintained good relations Continued to develop Continued to support Invited key stakeholders Promoted signature to gain valuable experience in playing on the big stage. with key stakeholders talent in the communities corporate social to CSA’s Transformation cricket competitions Members conduct their own marketing campaigns, through regular we operate in. investment initiatives Indaba for a firsthand such as the Pink Day based on their specific needs and requirements, OUTLOOK interaction. through monetary understanding of CSA’s drive and the Momentum under the guidance of CSA’s marketing strategy to contributions and cricket transformation progress. Friendship Games. ensure that all messages align with CSA’s strategic • Organising regular interactions with key media competitions. objectives. stakeholders and the Chief Executive to improve relations with the media. Performance of The Proteas Mens and • Placing increased efforts on profiling the RPC and Stakeholders directly and indirectly impact on our reputation and our ability to achieve our organisational goals. Womens National Team Standard Bank Hub programme that has gone a CSA invests in developing and nurturing dialogue with its key stakeholders to ensure that cricket is supported by To generate maximum revenue from broadcasting long way in enhancing the development of players most South Africans and is available to all who want to play it. The results of our dialogue with stakeholders are rights and sponsorships, the Proteas need to be from previously disadvantaged backgrounds. considered in shaping the organisation’s strategy. in the top tier of international cricket. This is also • Enhancing and solidifying various marketing critical for the Proteas brand, as the national players campaigns as we lead up to the start of the are often seen as heroes to their fans. The Proteas 2018/19 cricket season such as That’s Our Game, KEY STAKEHOLDERS brand is valuable in attracting new talent through the Inspire #ProteaFire and #AlwaysRising.

Government and associated entities ASSOCIATIONS

SPONSORS ICC AND FELLOW ICC MEMBERS Alignment with CSA’s CSA MEMBERS COMMUNITIES constructive vision, and ongoing mission and EMPLOYEES PLAYERS engagement values BROADCASTERS SUPPLIERS

MEDIA FANS

64 65 STAKEHOLDER ENGAGEMENT APPROACH to bring immediate information to supporters and Annual CSA Awards weekend: The annual CSA As part of the Nelson Mandela Library Project/ engage in dialogue. This helps CSA take remedial Awards provides an important platform to engage School’s Programme, Momentum handed over a self- CSA’s stakeholder engagement approach varies action if any issues arise. CSA continues to make with various stakeholders including Members, contained library, complete with books, bookcases according to each stakeholder. Our engagement is significant strides across social media platforms and the Board of Directors, sponsors, suppliers and and a comfortable reading space to encourage designed around the areas of concern and issues are remains the leading sports federation on social media players. learners to enjoy the new selection of books. The dealt with accordingly. A dedicated Communications in South Africa. Mandela Day Library Project was started in 2011. and Media Department is responsible for CSA’s Sponsors: Ongoing engagement takes place with Since then, more than 40 000 children a day now media relations and CSA’s media protocol policy Using digital content across our various platforms sponsors at regular sponsor forums and face- have access to Mandela Day libraries. assists in ensuring alignment of all messages. The led to good growth in followers as evidenced by to-face meetings. The annual CSA Sponsors Board is kept aware of any critical stakeholder the social media statistics. To monetise this digital Forum is an ideal platform for CSA, partners and PinkDay: This years’ Momentum ODI PinkDay was issues through the Social and Ethics Committee. content, CSA will pursue selling advertisement space agencies to network and share best practices. The a resounding success with over 23 000 people An independent research company, Nielsen Sports, in its digital magazine. CSA will also improve its Sponsors Forum is also the perfect opportunity to attending the game; there wasn’t a single seat regularly monitors CSA’s fan base, television customer relations management as this will enable reflect on the past season and plan for the coming available in the suites or in the stadium. South Africa viewers and social media to better understand and better monitoring of online interaction with fans season. continued their unbeaten run in pink, and fund- connect with them through media, sponsorship, through competitions and the notification of ticket raising efforts saw us raise R1,7 million for the Breast communication and experiential platforms. specials. Media: Our relationship with the cricket media was Care Clinic at the Charlotte Maxeke Johannesburg bolstered by our engagements with them in the Academic Hospital, a new beneficiary of the Engagement platforms Key stakeholder engagement during 2017/18 last six months. Such engagements included a Momentum ODI PinkDay. CSA uses various engagement platforms, depending Transformation Indaba: This Indaba provided an media round table discussion with local journalists on which stakeholder is being engaged. These ideal opportunity for CSA to connect with specific (December 2017) attending the Zimbabwe Test Each year, we set out to make sure that the platforms range from face-to-face meetings, media stakeholders around the organisation’s progress in Port Elizabeth. This provided an opportunity Momentum ODI PinkDay remains fresh. This year, briefings, written publications and reports, CSA’s against its previous transformation resolutions and to update journalists on various issues following our ambassador programme worked well, with many website and social and digital media. to provide input around what CSA expects to see the Board meeting in December 2017. A further notable initiatives including our fashion ambassador in the new resolutions. This Indaba also provided engagement was with the President and Chief David Tlale’s specially-designed Relate bracelet, Digital platform opportunities for broadcasters (SuperSport and Executive in Bloemfontein in October 2017, the which raised R90,000 for breast cancer. Miss South Social media (CSA uses Facebook, Instagram, SABC) as well as journalists to have first-hand first media engagement since the departure of the Africa 2017, Adé van Heerden, was an ambassador Twitter and YouTube) remains a powerful platform knowledge of CSA’s transformation progress. previous Chief Executive. for the day and helped promote the event on social media, which helped drive online engagement along Corporate social initiatives with our #PitchUpInPink initiatives. 32 718 15 074 As a corporate citizen, CSA acknowledges its responsibility to invest in and contribute to the Nielsen Sports’ analysis showed that the PinkDay 314 000 222 000 sustainable development of the environment ODI is also very popular on TV for those unable to it operates in. The organisation is committed attend the match. Viewing achieved the biggest ODI to increasing its impact across South African audience on SuperSport and SABC 3 of all ODIs, 813 000 982 000 communities, which aligns to CSA priorities as with a total unique audience of almost four million, well as the principles of the United Nations Global with a viewing threshold of five minutes consecutive Compact (UNGC). CSA invests approximately viewing. 2018 2017 R2 million annually on the initiatives discussed below, Social Media Social Media two of which (Mandela Day and Pink Day) are a CSA remains grateful to all the organisations FollowIng FollowIng collaborative effort. CSA currently obtains 100% of involved in making Momentum ODI PinkDay such a its social and economic development B-BBEE points success. from these distributions. Other initiatives supported include: 4.2 million 4.1 million Mandela Day: CSA and Momentum teamed up, along • Learners with special education needs. with the Standard Bank Proteas and Multiply Titans, • Blind Cricket and Deaf Cricket. to commemorate Mandela Day on 18 July. Volunteers • South African Sports Association for the from CSA, Momentum and the Titans painted and Intellectually Impaired Cricket. cleaned up Leboneng Primary School, including • Defence Force and Correctional Services Cricket. Facebook Instagram Facebook Instagram two classroom wings, an administration block and • Ngumbela Cricket. Twitter YouTube Twitter YouTube outside play equipment. • South African Police Services Cricket.

66 67 Momentum Friendship Games: CSA and Momentum NATURAL CAPITAL once again joined forces to host matches between Hubs and Standard Bank RPCs and traditional cricket schools. During the current year, matches CSA’s natural capital resources mainly include resources such as water and energy. CSA were played at Alexandra, Potchefstroom, Port appreciates that water is a scarce commodity in South Africa and efforts are being made to Elizabeth, Pinetown, Bloemfontein, Alice and Kimberley with the latter game providing the first save water wherever possible. instance of the Hubs team winning (Yorkshire Hub from Galeshewe, the club that also produced the batsman Loots Bosman). CSA uses natural resources, particularly water and energy, in its cricket activities. Water is used for the upkeep of the stadium grounds that are required to be at international standards for all international games hosted in South OUTLOOK Africa. Energy consumption takes place for all operational activities, on and off the field. CSA and its Members continue to implement initiatives to reduce its natural resource consumption. • Continuing to engage with key stakeholders across various platforms. • Arranging a send-off for the Protea women’s team PROGRESS AGAINST STRATEGIC OBJECTIVES ahead of the T20 World Cup in the Caribbean. • Hosting a Broadcast Forum for all local and Development and international broadcast partners. Excellence Sustainability Transformation Brand promotion Appropriate use of natural Innovative initiatives ongoing to LED lighting at stadiums, water CSA is committed to using resources to ensure international reduce resource consumption. wise projects (boreholes). natural capital conservatively to standards for international reinforces its brand promotion. games are met.

WATER CONSUMPTION ENERGY CONSUMPTION

Water consumption at the cricket stadiums is Energy costs in South African continue to escalate significant as CSA is required to keep stadium at levels above inflation and this has placed an grounds, where international games are hosted, additional burden on CSA’s operating expenses. To in conditions that meet the ICC requirements/ address this challenge, the three out of the thirteen standards. With South Africa’s water scarcity, stadiums have invested about R70 million in LED particularly in the Western and Eastern Cape it has lighting which is more energy efficient. become even more important to source alternative water sources for the grounds upkeep. Boreholes were installed at Newlands in Cape Town and will extend to stadiums in townships.

68 69 TRANSPARENCY AND ACCOUNTABILITY BOARD OF DIRECTORS Non-Independent directors NON-INDEPENDENT DIRECTORS The Non-Independent directors are appointed by the Members’ Council consisting of MEMBERS’ COUNCIL Members’ Presidents.

Chris Nenzani (55) Chris Nenzani Angelo Carolissen Tandubuntu Ganda President President of Boland Cricket Board – Border Cricket – • Educational specialist Members Council President President • Extensive leadership experience in cricket administration and education • Local and international knowledge and experience on various cricket committees

Gary Corin Donovan May Zola ThamAe Faeez Jaffar Eastern Cricket Union – Eastern Province Cricket Free State Cricket Union – KZN Cricket Board – President Board – President President President Rihan Richards (52) Beresford Williams (54) Zola Thamae (54) Non-Independent Director Non-Independent Director Non-Independent Director • Extensive cricket experience as a top-order • Cricket administrative experience with a • Advocate for girl’s cricket in disadvantaged batsman focus on being a treasurer areas • Cricket administrative expertise • Leadership experience at Western Province • Extensive cricket administrative experience • Leadership experience at Griqualand West Cricket Association and Western Cape and cricket world cup management Cricket Board Cricket • Leadership experience in the Community Sport at the Department of Sport, Art, Culture and Recreations in the Free State Jack Madiseng Rihan Richards CRAIG NEL JOHN MOGODI Gauteng Cricket Board – Northern Cape Cricket – Mpumalanga Cricket – Limpopo Impala Cricket – President President President President

Tandubuntu Ganda (49) Faeez Jaffar (58) Non-Independent Director Non-Independent Director • Educational specialist • Extensive cricket administrative experience • School’s coaching experience in the Eastern • School and senior professional cricket Cape experience John Wright DR. Oupa Nkagisang Rudolph Claassen Beresford Williams • Leadership experience on the Border • Leadership experience at the KwaZulu- Northerns Cricket Union – North West Cricket Union – South Western Districts Western Province Cricket Cricket Board Natal Cricket Union President President Board – President Association – President

The Vice-President position is vacant and will be filled at the September 2018 AGM. 70 71 INDEPENDENT DIRECTORS Board member attendance Independent Directors The Board of Directors convened four Board meetings and five special meetings between the commencement of the financial year to the date of this report. The Chief Executive and his Exco team are invitees to these The Independent Directors were nominated meetings. for appointment by an independent Nominations Committee and appointed by the CSA Members’ Council. Board member Attendance Special meetings Non-Independent Directors Chris Nenzani – President 4/4 5/5 Thabang Moroe – Vice-President * 4/4 5/5 Rihan Richards 4/4 5/5 Beresford Williams 4/4 5/5 Zola Thamae 4/4 5/5 Norman Arendse, SC (59) Tando Ganda 4/4 4/5 Lead Independent Director Faeez Jaffar 4/4 5/5 • Extensive practical legal experience, specialising in constitutional litigation Independent Directors • Governance and HR experience • Extensive football administration expertise Norman Arendse 4/4 5/5 • Leadership experience on various boards Mohamed Iqbal Khan 4/4 5/5 Dawn Mokhobo 3/4 3/5 Vusi Pikoli 4/4 4/5 Louis von Zeuner 4/4 4/5

* Mr. Moroe was appointed acting CEO from September 2017 and therefore he attended Board meetings in an ex-officio capacity.

Mohamed Iqbal Khan (52) Dawn Mokhobo (69) Independent Non-Executive Director Independent Non-Executive Director • Financial, audit and business expertise • Leading business woman in corporate • Extensive operational experience South Africa • Extensive leadership experience on various • Extensive business expertise spanning boards across public, private and parastatal sectors • Extensive leadership experience on various boards

Adv. Vusi Pikoli (60) Louis Von Zeuner (57) Independent Non-Executive Director Independent Non-Executive Director • Extensive legal and forensic expertise • Financial, audit, risk and capital expertise in • Government special adviser the financial sector • Extensive leadership experience on various • Extensive financial service and business boards and in government positions experience • Extensive leadership experience on various boards locally and internationally

72 73 CORPORATE GOVERNANCE OVERVIEW EXECUTIVE COMMITTEE

The CSA Board of Directors considers sound corporate governance structures and processes as pivotal in delivering responsible and sustainable growth in the sport of cricket and the business of CSA. These governance structures and processes are regularly reviewed by the Board and, where necessary, are adapted to reflect national and international best practice. CSA embraces King IV’s principles: ethical leadership, corporate citizenship, Thabang Moroe (35) Naasei Appiah CA(SA) (42) Chief Executive Acting Chief Operating Officer sustainable development, stakeholder inclusivity and integrated thinking and reporting. • Non-independent director • Financial and auditing experience expertise • Extensive leadership • Governance, operational and experience in cricket and administrative expertise corporate • Commercial, leadership and As a non-profit company, CSA is subject to the Ethical leadership and culture • Cricket development expertise business experience corporate governance, disclosure and other legal The Board consciously seeks to safeguard the requirements of the Companies Act, No 71 of integrity and reputation of cricket in South Africa and 2008. CSA has embraced and applies most of the it sets the ethical tone from the top. The Social and King Code of Governance Principles. Following Ethics Committee keeps the Board apprised of any the release of the King IV Report on Corporate material ethical issues or contraventions. CSA has Governance for South Africa (King IV) in November various centralised interventions that monitor the 2016, CSA conducted a gap analysis between King ethical climate of the organisation – including players, III and King IV to determine any shortcomings that Members and CSA administrative staff through the the Board should focus on. This analysis revealed compliance and internal audit departments. These Max Jordaan (61) Corrie van Zyl (55) Clive Eksteen (51) Dr. Mohammed Moosajee (47) that CSA applies most of the King IV principles. interventions include CSA’s code of ethics and the Transformation and Member General Manager Cricket Head of Commercial Proteas Team Manager & Doctor Areas of non-compliance are listed below. anonymous whistle-blowing and anti-corruption Relations Executive • Extensive cricket and coaching • Entrepreneurial experience • Proteas Medical Doctor and fraud hotline (0800000536) managed by Deloitte. • Educational, government expertise focusing on sports and consulting Doctor to Kaizer liaison expertise • Sports management expertise entertainment sectors Chiefs Football Club CSA’s code of ethics sets out the duties and • Extensive local and • Represented South • Extensive commercial and • Former cricket player who King IV non-compliance responsibilities of all its stakeholders and it broadly international cricket Africa internationally and marketing experience captained SA Schools as administration expertise domestically spanning 13 • Former Proteas player well as a former professional The majority of directors are not independent, nor does the covers the following: with a focus on national years soccer player transformation • Extensive leadership Board have executive directors. This is due to requirements • Leadership experience experience at the Bizhub imposed on CSA by SASCOC to whom it is affiliated. • Fundamental ethical values that are enshrined in Highveld Lions and the the South African Constitution. Gauteng Cricket Board King IV recommends that the Board should appoint a • The core values of the game of cricket as defined nominations committee as a standing committee of the in the preamble to the laws of cricket. Board. CSA appoints an independent nominations committee • The principles and ideas contained in CSA’s (no members of the Board serve on the committee) as pledge to the nation in 2002. and when required for the nominations and appointment • CSA’s role as the custodian of cricket in South process of the Board. The Company Secretary of CSA is the Africa. secretary of this committee. CSA does not perform externally facilitated board and During the financial year under review, CSA Ziyanda Nkuta CA(SA) (30) Lindiwe Ndziba CA(SA) (28) Koketso Goafetoge (32) Musa Gubevu (39) committee evaluations and the individual performance of outsourced its supplier vetting process to further Acting Chief Financial Officer Head of Compliance and Acting Head of Media and Human Resources Manager the directors and chairman is not evaluated. The CSA Board enhance its supply chain management process, • Extensive financial and Company Secretarial Communications • Human resources experience performs internal self-evaluations of the Board and its including any conflict of interest with suppliers. auditing experience • Extensive corporate • Sports Media and • Extensive accounting, tax and • Cricket administration governance, compliance and Communications expert payroll experience committees’ effectiveness annually. expertise legal experience • Proficient sport administrator • Cricket administration Governance framework • Strategy implementation and • Company secretarial expertise with extensive experience in expertise CSA operates within a clearly defined governance operational reporting • Financial and auditing various sporting codes framework as shown on page 78. The highest experience • Digital and social media specialist decision-making body is the Members’ Council, which is made up of the 14 Member Presidents. The

74 75 Members’ Council appoints and delegates authority CSA directorships, are not involved with cricket. Board induction, training and evaluation organisation design and director rotation plans are to the Board and the Board sets general policy. CSA These independent directors were selected and Board induction: The Legal Secretariat and likely to address this issue. has approved delegation of authority levels that are nominated for appointment through a nominations Compliance department is responsible for ensuring reviewed and revised on an ongoing basis. process that was comprised of persons who are that the Board receives induction training upon Management is currently considering the Board independent of CSA. The independent directors appointment. The induction packs include an evaluation reports and the necessary interventions Board of Directors bring a wealth of knowledge and experience to CSA overview of CSA, the Board and sub-committees’ will be recommended and implemented within The Board is responsible for the strategic direction on the legal, financial and business fronts, which terms of reference, the fiduciary duties and the 2018/19 financial year. Observation and of CSA through the governance framework. CSA’s serves to ensure a robust governance and decision- responsibilities of being a director and other relevant interventions on the issues raised will be accurately strategy is based on five strategic objectives: making process. Directors serve a three-year term, governance information required for the Board disclosed and communicated in the 2018/19 excellence, development, sustainability, with a director being eligible for re-election for an members to familiarise themselves with CSA. Integrated Report. transformation and brand promotion. Management additional three-year term. No director may serve are tasked with implementing this strategy and for more than two consecutive terms. Board training is ongoing and the Head of In response to the 2017 Board evaluation, the reporting on strategic progress annually to the Compliance and Company Secretarial circulates following matters have been attended to: Board and its various sub-committees. Management The Chairman of the Board is Mr Chris Nenzani, relevant external training courses or workshops present CSA’s annual strategic scorecard rating who is a Non-Independent Director. In terms of which the Board can attend. In-house training occurs Issues raised in 2017 Interventions to the Board for deliberation and approval. Going King IV, if the chairman is not independent, a lead when relevant, to keep abreast of the changing Improve the communication The Board was provided with forward, specific key performance indicators per independent director should be appointed. CSA’s legislative and governance environment. The of the Chief Executive’s an update on the performance strategic objective will be introduced to enhance Lead Independent Director is Adv. Norman following training sessions were conducted in the performance evaluations evaluation of the Chief Executive strategic progress objectivity. All policies and Arendse, SC. company during the year under review: to all Board members in a in an in-committee session. procedures that provide direction to the organisation transparent and effective are approved by the Board and management The CSA Independent Nominations chaired by • Fraud, corruption and ethics awareness. manner. provides progress on material matters relating to Shawn Christiansen called for Independent Director • Employment Equity. these policies and procedures. Nominations in April 2018, the call for nominations • IT Governance. Consider increasing time Board meetings have been held was well received. The Nominations Committee allocated to Board meetings on weekends to ensure adequate In terms of CSA’s MoI, the Board is comprised received a total of 140 applicants for the two Board evaluations are conducted annually by the to enhance effective time is allocated to the meetings. of seven non-independent directors – who are Independent Director vacancies. CSA, through its Company Secretary and submitted to the Executive deliberations. The Board has had several in- Presidents of Affiliates and therefore involved formal nominations processes has recommended and Compliance Manager. The overall 2018 committee meetings to further in cricket administration – and five independent two Independent directors for appointment at the evaluations raised a few matters in respect of the deliberate on sensitive matters. directors, namely persons who, apart from their 2018 AGM. functioning of the Board of Directors, relationship Enhance Board induction The Board induction held in 2017 between management and the Board as well as the training to prepare members included expert presentations effectiveness of the Board Committees. for effective discharge of regarding a director’s fiduciary Board composition their duties. duties. The overall response was positive and encouraging Revise Board committee Management has worked with areas requiring improvement noted. Some of the reporting to improve clarity towards presenting relevant and 1 1 1 key improvement areas were highlighted as follows: 17% of significant matters arising concise reports for the Board’s 1 and how they were resolved. consideration. 2 • Management to timeously present resolutions to the committees and the Board, to provide directors reasonable time to appropriately Reporting DEMOGRAPHICS 6 GENDER AGE consider and advise on the matters presented. CSA regularly reports externally to various • Management to improve on regular engagement stakeholders throughout the year. The Board with the Board on significant matters that require assumes responsibility for ensuring all external 3 83% Board approval. reporting is complete and accurate and conveys 9 • Regardless whether management supports Board information that enables stakeholders to make decisions or not, these should be appropriately informed decisions regarding the organisation. implemented and monitored by management. Black Men Between 30 and 40 years • Board is concerned about succession planning Access to information Coloured Women Between 40 and 50 years in both management and on the Board as well as The Board has unrestricted access to management, Indian Between 50 and 60 years the composition of the Board relation to gender company information and external specialist advice White >60 years and demographics. Interventions such as the at CSA’s expense. Exco facilitates this process.

76 77 Board committee focus areas Committee membership Attendance Conflicts of interest Board is satisfied that it and its sub-committees have In accordance with the Companies Act 71 of 2008, fulfilled its responsibilities in accordance with these Audit and Risk Committee: The committee is statutory committee of the Board that is constituted in terms of section 94(7) of directors are required to disclose any personal terms of reference. The Board and its committees’ the Companies Act No. 71 of 2008. interests they may have in any transaction of terms of reference are available on CSA’s website: 1. Review of the Annual Financial Statements and Integrated Report for Louis von Zeuner (Chairperson) 4/4 significance with the company. CSA has a standing http://cricket.co.za/cat/19/Governance. recommendation to the Board for approval. Vusi Pikoli 3/4 ‘conflicts of interest’ agenda item on its Board and 2. Review and evaluation of internal audit and internal controls across Mohamed Iqbal Khan 3/4 sub-committee meetings where directors and any Where necessary, external advisers are invited to the organisation, including Members. Thabang Moroe 1/4 other attendees are required to disclose any such the Board and its sub-committee meetings. These 3. Review of material sustainability issues, including the going concern conflicts of interest. During the period under review, advisers include external auditors and cricket experts assumption. there were no such conflicts. and the relevant Exco members are permanent 4. Evaluate the effectiveness of the risk management, compliance and invitees. the governance process. Closed sessions 5. Policy Reviews: IT Governance and Fraud Policy and Procedures. The Audit and Risk Committee agendas provide for Other than the Cricket Pipeline and Transformation Finance and Commercial Committee: The committee assists the Board in discharging its responsibility in relation to all confidential meetings between committee members Committees, members of all other committees are financial and commercial matters of CSA. and the internal and external auditors. also directors. 1. Approves the annual budget (2018/19) and forecasts. The review of Mohamed Iqbal Khan (Chairperson) 3/3 the CSA four-year financial plan. Louis von Zeuner 3/3 Board committees The Members’ Council appointed the members of 2. Approves ad hoc funding for projects (such as the T20 Domestic There are several committees, as depicted in the the statutory Audit and Risk Committee. All other League). governance structure below, which have been committees were appointed by the Board. The 3. Provides Investment recommendations in relation to investing cash established to assist the Board in discharging its membership and attendance at CSA’s Board and and monitoring investment funds. duties. All these committees are chaired by a director committee meetings is tabled on pages 73, 79 4. Review of the commercial overview, adequacy of revenue sources. and operate under their own Terms of Reference. The and 80. 5. Oversight of the 2018 SACA MoU negotiations. Cricket Committee: The committee assists and advises the Board on all professional and semi-professional playing issues and deals with development activities and programmes at all levels of cricket. CSA Governing structures 1. Tracking the progress and implementation of the Domestic Cricket Tando Ganda (Acting Chairperson) 6/6 Review. Beresford Williams 6/6 2. Reviewing the findings and recommendations of the National Team Rihan Richards 6/6 Members Council 14 Member Presidents Review Panel Report. Greg Fredericks 6/6 3. Recommended approval of the Proteas Men and Women Contracts for SACA Representative 5/6 the 2018/19 Seasons. Robin Peterson (Past Player) 3/6 4. Review and recommend High-Performance contracts. John Wright (Members Council Representative) 6/6 Board of Directors 12 (includes 5 Independent Directors) 5. Analysis and review of the Quality of Opportunity Reports. 6. Assessing the implications of Kolpak within the cricket system. 7. Reviewing Proteas Men’s and Women’s Tour review reports. Cricket Pipeline Committee: The committee deals with development activities and programmes at all levels of cricket Remuneration Finance and Social Independent Audit and Risk Cricket Pipeline Cricket Transformation and HR Commercial and Ethics Nominations 1. Implementation of the player performance plan. Rihan Richards (Chairperson) 3/3 Committee Committee Committee Committee Committee Committee Committee Committee 2. Assessing the Schools Quality Index. Tando Ganda 2/3 3. Concluding the Schools Cricket Review. Faeez Jaffar 1/3 Zola Thamae 3/3 Eugene Jacobs 3/3 Chief Executive Dr. Oupa Nkagisang 0/3 Remuneration and Human Resources Committee: The committee assists the Board in discharging its responsibilities in all human relations and remuneration matters of CSA. 1. Recommends the directors’ fees for Members’ Council approval. Dawn Mokhobo (Chairperson) 2/2 Chief Executives Medical Committee Committee 2. Reviews and recommends the most suitable incentive schemes to Rihan Richards 2/2 ensure continued contribution to stakeholder value. Tando Ganda 2/2 3. Reviews the progress of training and development of staff at CSA and Member level.

78 79 Board committee focus areas Committee membership Attendance REMUNERATION OVERVIEW Stakeholder relationships Social and Ethics Committee: The committee is a statutory committee of the Board that is constituted in terms of section 72(8) Ensuring positive stakeholder relationships is of the Companies Act No.71 of 2008. critical for CSA as it regularly engages with a MESSAGE FROM THE REMUNERATION CHAIRMAN 1. Monitors the social and economic development in respect of B-BBEE, Vusi Pikoli (Chairperson) 3/3 variety of stakeholders (see page 65 for list of key human rights, labour, environment and anti-corruption. Zola Thamae 3/3 stakeholders and CSA’s stakeholder approach). The I am pleased to report CSA’s remuneration overview, 2. Reviews and monitors compliance with preferential procurement Beresford Williams 3/3 Board assumes full responsibility for the governance which sets out the Board’s assessment of CSA’s policies and B-BBEE codes of good practice. of stakeholder relationships and receives regular performance for the 2017/18 financial year. The 3. Monitors the company’s activities having regard to the 10 Principles updates from Exco on key stakeholder issues and organisation’s remuneration philosophy ensures that of the UNGC (United Nations Global Compact). actions taken to address and manage stakeholder remuneration is fair, responsible and transparent and 4. Provides oversight on the development and implementation of the expectations in a transparent and balanced manner. is aligned with the organisation’s strategic objectives. Corporate Social Investment policy. This pay structure combines a competitive pay and IT governance performance-based compensation strategy to attract Transformation Committee: The committee formulates CSA’s transformation policies, procedures, protocols and strategy matters and monitors the implementation of the transformation charter at all operational levels within CSA, and at each one of The Board is ultimately responsible for IT and retain excellent talent, while promoting positive its structural components at national, provincial, associate, club and school level, including the players’ association. governance within CSA. Currently the Audit and outcomes in line with CSA’s ethical culture. There Risk Committee is tasked with assisting the Board in were no material changes to CSA’s remuneration 1. Monitors the progress against the EPG and the internal barometer. Norman Arendse SC (Chairperson) 4/4 discharging its duties and responsibilities in respect philosophy and policies during the year under review. 2. Initiating and leading the 2018 CSA Transformation Indaba. Faeez Jaffar 2/4 of IT governance. Going forward, an IT Steering 3. Advises, guides and provides direction to the rest of the organisation Louis von Zeuner 3/4 Committee will be established to focus on specific IT The Human Resources and Remuneration Committee on transformation matters. Dr. Oupa Nkagisang 3/4 requirements within CSA as the need for innovative (Remco) is responsible for assisting the Board in Angelo Carolissen 2/4 technology increases. This committee will be chaired fulfilling its remuneration, corporate governance Dawn Mokhobo 1/4 by the Chief Operating Officer and will report directly and supervision responsibilities and aligning the to Exco, who will keep the Audit and Risk sub- remuneration philosophy with the business strategy. committee abreast of CSA’s IT governance strategic Remco also assists management to attract, retain, direction. motivate and reward senior executives and staff by Company Secretary the payment of fair, competitive and appropriately The Company Secretary function is currently the CSA reports its progress to the UN biennially. Key Combined assurance structured remuneration. Remco operates under responsibility of Ms. Lindiwe Ndziba CA(SA) who is outcomes noted in CSA’s latest report (February The Board is satisfied that CSA’s combined approved terms of reference, which are available the Head of Compliance and Company Secretarial 2018) to the UN included: assurance model is effective in monitoring internal on CSA’s website at: http://cricket.co.za/cat/19/ and was appointed on 1 March 2016. The Board is • Progress in reflecting the demographics of South controls. This monitoring is achieved through Governance. satisfied that Ms Ndziba is suitably qualified to fulfil Africa, which are based on the Economically oversight by CSA’s Internal Audit and Compliance this position. Active Population targets. functions as well as External Audit. Refer to page 30 Its responsibilities include: • Focusing on providing opportunities for people for further details in the Audit and Risk Committee • Reviewing and approving remuneration policies. Corporate citizenship with disabilities. report. • Reviewing and rendering decisions on matters for The Board assumes responsibility for CSA’s • An excellent safety record at all stadiums and which authority has not been otherwise delegated. corporate citizenship and is regularly kept apprised adherence to SASREA. • Remuneration matters pertaining to the Chief of progress by the Social and Ethics Committee. • Continued adherence to all relevant laws and Executive. Corporate citizenship is inherent in CSA’s business. regulations. CSA incorporates the UNGC 10 Principles into • Continued ethical due diligence on all trading and Remco performs additional duties delegated to it by its internal operations and policies, particularly in commercial partners (including sponsors). the Board from time to time, including: the following four areas: human rights violations; • Continued monitoring of corruption and fraud • Approving the benchmarking methodology for labour rights and exploitation of workers especially through CSA’s anonymous hotline. salaries and incentive amounts. child labour; environmental issues, especially the • Developing a Corporate Social Responsibility • Approval of retention schemes. preservation and rehabilitation of the environment; Policy and implementation plan. • Approving the remuneration overview included in and contributing to the fight against corruption. this report.

The committee acknowledges that remuneration decisions should take account of the operating environment (external factors) and internal factors. Some of the external factors considered during the financial year in determining CSA’s remuneration

80 81 included: economic climate, market trend, inflation Even under these strenuous circumstances, Remco REMUNERATION POLICY CSA remuneration objectives: and legislation. Internal factors included: the review was satisfied that the CSA brand, the Proteas, and • Provides rewards that attract, retain and motivate staff and of business and operational outcomes, including the trust of its stakeholders has been maintained CSA uses remuneration to attract, motivate and help develop a high-performance culture. CSA’s performance at a corporate level, risk and/or rebuilt, with major milestones being achieved retain the best talent into key roles that will enable management, portfolio of sponsors, cricket pipeline despite a difficult situation. The committee was the organisation to deliver on its strategy. This policy • Offers a pay model that supports a high-performance and individual and departmental performance. A therefore of the opinion that management’s applies to all permanent CSA employees. organisation. salary benchmarking exercise was undertaken by performance largely exceeded expectations and they • Provides a ‘total reward’ approach, which involves creating independent remuneration specialists, 21st Century were rewarded accordingly. CSA remuneration practices are aligned to the the right mix of non-financial and financial rewards. Pay Solutions Group, to determine whether CSA’s related compliance requirements: • Offers flexibility via the total package approach. salaries are adequately benchmarked compared to The committee is satisfied that, during the • The remuneration policies address all components • Aligns remuneration with CSA’s strategic objectives. similar-sized organisations. period under review, it performed its duties and of remuneration, including the structuring of fees responsibilities as set out in its terms of reference. for non-executive directors of the governing body. • Applies remuneration fairly and consistently throughout the Remco reviewed and deliberated company and • Executive remuneration practices are fair and organisation. management’s performance during the year. This Looking ahead, CSA will continue to ensure its responsible in relation to the overall employee performance was evaluated against KPIs with remuneration philosophy remains aligned with best remuneration. specific weightings, taking account of the external practice and that remuneration is linked to CSA KPIs, • Short-term incentives consider company, remuneration benchmarking outcomes. Following thereby ensuring remuneration is fair, responsible department and individual contributions. These these deliberations, Remco recommended a 6% staff and transparent. Specific focus areas include the are managed through performance management salary increment on the overall payroll costs for the implementation of key findings following CSA’s processes. 2017/18 financial year, compared to a market-based organisational design. • Remuneration disclosures include basic salary, 6.6% salary increase. In addition, the committee benefits and short-term incentives. recommended a short-term incentive pool of funds The ensuing information includes more detail on for distribution based on the agreed scientific model CSA’s remuneration philosophy and policy. CSA’s CSA business needs and values Individual needs and values in place. Based on Remco’s recommendations, the Executive, Non-Executive and Prescribed Officer’s Strategic objectives Performance management Board approved the salary increase and incentive remuneration disclosures are detailed in CSA’s pool fund. Annual Financial Statements, which can be obtained Remuneration Strategy at CSA offices. External equity Internal equity During the current year, the company saw significant Benchmarking surveys Defined levels and job evaluation changes that threatened to disrupt its normal operations, including, but not limited, to the exit of the previous Chief Executive at the start of the cricket Employee remuneration structure season, which caused disharmony within the staff DAWN MOKHOBO CSA’s remuneration framework is effective in The CSA remuneration structure comprises fixed pay body. Management, under the leadership, guidance Remco Chairperson supporting the achievement of the company’s (including benefits) and variable pay as tabled on and support of the Board, managed to keep the staff strategic objectives. It aligns to best practice and page 84. The company does not have medium- and and strategic objectives at the helm of operations. 8 September 2018 it fairly rewards individuals for their contribution to long-term incentive schemes. the business, having regard to the need to attract, motivate and retain high calibre employees.

82 83 Element Purpose Factors considered Short-term incentive allocations (STI) the four-year financial planning cycle, rather than Fixed portion of pay including This is the total annual guaranteed cost to company of • Market related value of the role Consistent with the previous year, the STI budgeting for larger incentives in good years when benefits employing an individual. This cost includes the total annual • Skills and experience is discretionary and has a direct correlation revenues are high and smaller incentives in lean salary, plus benefits (provident fund, death, disability and to company, department and individual years. To secure a STI pay out, an individual must funeral cover, and medical aid). Annual salary increments performance. The STI pool is budgeted evenly over score 3 and above. are based on the guaranteed package and aim to match the benchmark midpoint to the market median. Variable portion of pay through CSA’s This is an annual discretionary bonus tied to the • Incentive targets CSA STI performance measures1 annual short-term incentive (STI) performance of the company, department and/or individual • Individual performance Company Department Individual scheme performance. Chief executive 80% n/a 20% Project incentives This is when short-term incentives may be introduced • Achievement of key milestones Executive – upper level 50% 20% 30% based on delivery of a specific strategic project. Executive – lower level 40% 30% 30% Major event incentives This incentive relates to events hosted by CSA on behalf of • Achievement of event the ICC or other international cricket boards. Managerial 25% 25% 50% General staff – C grade 20% 20% 60% Company performance rating performance and the presidential plan (strategic – B grade 15% 15% 70% CSA applies a performance rating scale of 1 to objectives). Specific weightings are applied within 5, with 1 being totally unacceptable, 3 being the KPIs for each of the financial years under review. – A grade 10% 10% 80% meeting all expectations and 5 being performance These KPIs ensure that remuneration is linked to 1 CSA uses the Patterson Grading system. that consistently exceeds expectations. The specific performance areas as approved by the organisation’s evaluation tool includes CSA’s Board and drives the correct strategic focused corporate scorecard, financial and operational behaviour throughout the organisation. Employment contract notice periods Company KPIs Exco have a three-month notice period and all other Weighting for Weighting for staff have a one-month notice period. CSA KPIs Strategic objectives 2017/2018 2016/2017 Non-executive directors’ fees The scorecard used to evaluate the companywide performance Non-executive directors are appointed by the CSA corporate scorecard of strategic objectives. This document is monitored and updated 25% 25% Members Council to the CSA Board based on regularly (at all Exco, Board Committee and Board meetings). their ability to contribute specific skills, insight and Optimisation of revenue to meet business objectives and operational Financial performance 25% 25% experience appropriate to assisting the organisation efficiency. to set out and achieve its objectives. Bearing in Cricket activities (operational Appropriately spending funds and delivering on the Presidential Plan mind that CSA is a non-profit company, fees are set 20% 20% performance) mandate. at levels to attract and retain the calibre of director necessary to contribute to a highly effective board. Presidential Plan Directors receive fixed fees for services rendered The below five strategic objectives – CSA strategic mandate 30% 30% on the CSA Board and its Board committees and – Excellence 8% 8% they do not receive performance incentives. Non- – Development 4% 4% CSA strategic performance executive director’s fees are paid either quarterly – Sustainability 4% 4% or monthly, based on their responsibilities and – Transformation 8% 8% commitment to CSA. – Brand and marketing 6% 6%

84 85 SOCIAL AND ETHICS COMMITTEE REPORT management has been instructed that there and development activities. We have managed to should be zero-tolerance for non-compliance. finalise the CSA Fraud and Corruption Policy and MESSAGE FROM THE SOCIAL AND ETHICS The key role of the committee is to ensure that CSA procedures of which will be shared with Members CHAIRMAN is always conscious of its role and responsibility as 3. Employment Equity (EE) in order to achieve alignment. a good corporate citizen. Our focus for the past year The purpose of EE is to achieve equity in the It is with great pleasure to present this report to the has been primarily on the following areas: workplace by promoting equal opportunity and Despite concluding the anti-corruption AGM and the CSA Board. It has been a challenging fair treatment in employment through elimination investigation in 2017, CSA remains vigilant to the year; however, the committee is confident that the 1. Policies, Procedures and Practices of unfair discrimination and implementing continuing threat of corrupt activities in domestic organisation is achieving much needed stability. We have aligned our policies and practices with affirmative action measures to redress the and international cricket. the 10 principles of the UN Global Compact, disadvantages in employment experienced by Despite the hurdles the committee has made strides particularly in the following four areas: designated groups, in order to ensure equitable CSA continues to monitor corruption and in effectively executing its duties and responsibilities. representation in all occupational categories and fraud through the anonymous hotline which is We further extend our appreciation to management a) Human rights violations; levels in the workforce. facilitated by Deloitte. for the willingness to cooperate and implement the b) Labour rights and exploitation of workers recommendations and advice of the committee on all especially child labour; Management is working on the next three-year 6. Corporate Citizenship critical matters. c) Environmental issues, especially the EE plan as the current plan is due to expire on 31 As a corporate citizen, CSA acknowledges its preservation and rehabilitation of the October 2018. responsibility to invest in and contribute to the OVERALL REVIEW environment; and sustainable development of the environment in The first chapter of the King IV Report of d) Contributing to the fight against corruption in EE is a company-wide responsibility and its which it operates. Corporate Governance is “Leadership, ethics, and all forms including extortion and bribery. effectiveness is dependent on all employees corporate citizenship”. Placing this chapter right understanding the need to achieve equity in the CSA is currently in the research and development at the beginning was no coincidence, but rather a 2. Procurement workplace. In particular, employees at managerial phase of its Corporate Social Investment (CSI) recognition that good governance starts with – and The committee ensures that CSA’s procurement level need to know their rights and duties towards Policy after which we will draft a strategy and cannot be sustained without – ethical leadership practices are in line with the Broad Based Black this organisational objective. operational plan. The aim is for the organisation and corporate responsibility. This chapter addresses Economic Empowerment (B-BBEE) codes. to implement long-term and sustainable CSI the governance of social and ethical performance Compliance with B-BBEE is of high priority CSA is currently holding EE workshops for all our strategies and programmes. The current CSI of the organisation which is the core mandate of for the organisation and CSA is committed to Members. initiatives remain in place; however, these will be this committee. It must be emphasised that King addressing historical imbalances of the country incorporated into the formalised CSI programme IV has elevated the mandate of this committee to by facilitating the participation of black people 4. Safety, Health and Environmental Policy next year. ensure that the governance of ethics is prioritised in the mainstream economy. Since the formation Our call has always been one of “Safety before and monitored as the main requirement for achieving of this committee CSA has progressed from a Profits”. The committee continuously monitors 7. CSA and Members’ association with good governance. BEE rating level 5 in 2013 to a level 4 in 2016. safety measures at the stadiums and ensures the Politically Exposed Persons (PEPs) Management has maintained the level 4 rating effective implementation of safety procedures The committee wishes to emphasise the During the year under review the committee held since, however, they have committed to working and training programs. significance of maintaining the good reputation three scheduled meetings and can confirm that we towards a level 3 in the upcoming year. of the organisation. The reputational risk that have run our business in a manner that addresses all Subsequent to the completion of phase 1 accompanies any association or perceived areas of our Terms of Reference. The attendance of Despite the amended B-BBEE codes which of the stadium upgrades in the current year, association with PEPs is likely to hinder the meetings is set out on page 80 of this report. now require majority of CSA Members to Stadium compliance certification reviews were longstanding good reputation of the organisation. obtain an BEE Affidavit Certificate, at the 2018 conducted. The compliance with Safety at CSA and its Members are encouraged, going Member Meetings attended National Transformation Indaba, Members Sports and Recreational Events Act (SASREA) is forward to be cognizant of its current and Vusi Pikoli (Chairman) 3/3 committed to complying with the BEE currently being effectively monitored before the future partnerships. A due diligence should Beresford Williams 3/3 elements that drive the broad organisational commencement of the 2018/19 cricket season. be performed on all partners to ensure that Zola Thamae 3/3 transformation objectives. partnerships are pursued with ethical and Management has been tasked with formalising upstanding organisations. CSA experienced a few procurement related and implementing all necessary safety, health and governance lapses during the year. The environmental policies and procedures. 8. Dispute resolution procedures necessary interventions have been implemented The Committee has monitored the resolution of and will be monitored accordingly. The committee 5. Fraud and Corruption legal and Member disputes in the past year. The commits to keeping a close eye on the adherence We remain committed to monitoring the committee would like to express their concern to the CSA Procurement policy and procedures, compliance of the laws and regulations, social regarding the volumes of Member disputes

86 87 reported to CSA. Members are urged to follow CSA REPRESENTATION due process and exhaust their internal processes in accordance with the CSA and Member constitutions. The substance of disputes will be The latest cricket statistics suggest that there are 831 assessed thoroughly; false reporting will not be registered clubs countrywide with 36 839 registered club tolerated. cricketers.

9. Conclusion In conclusion, as I retire from the CSA Board at the 2018 AGM, I would like to extend my gratitude to the committee members, Ms. Zola Thamae and Mr Beresford Williams, as well as the permanent attendees for the very positive and constructive manner in which the committee has worked together over the years.

And furthermore, I would like to extend my appreciation to the CSA Board for entrusting me with the duty of leading the first Social and Ethics Committee of CSA.

Best wishes to my successor, I believe that this committee has laid a foundation, which will be consolidated by the incoming committee.

On behalf of the Social and Ethics Committee.

ADV. VUSI PIKOLI Chairman

8 September 2018

88 89 ABBREVIATIONS FORWARD-LOOKING STATEMENTS AFS Annual Financial Statements CLT20 Champions League Twenty20 This integrated report contains forward-looking CSA Cricket South Africa statements that, unless otherwise indicated, reflect DBE Department of Basic Education CSA’s expectations as at 30 April 2018. Words such EPG Eminent Persons Group as “aim”, “anticipate”, “could”, “estimate”, “expect”, Exco Executive Committee “intend”, “outlook”, “seek” or similar expressions FTP Futures Tour Programme typically identify forward-looking statements. These ICAS Independent Counselling and Advisory forward-looking statements are not statements Service of fact or guaranteed, and CSA cannot guarantee ICC International Cricket Council that any forward-looking statement will materialise. IIRF International Integrated Reporting Readers are cautioned not to place undue reliance Framework on these forward-looking statements. Such M2E Momentum 2 Excellence statements have not been either audited or reviewed MoI Memorandum of Incorporation by company’s external auditors and CSA disclaims MoU Memorandum of Understanding any intention and assumes no obligation to update or ODI One Day International revise any forward-looking statement. PDP Player Development Plan PPP Player Performance Plan RPC Regional Performance Centres SACA South African Cricketers’ Association CONTACT DETAILS SASCOC South African Sports Confederation and Olympic Committee Cricket South Africa NPC SAREA Safety At Sports & Recreational Events 86, 5th and Glenhove Street, Melrose Estate Act PO Box 55009, Northlands, 2116 SRSA Sport and Recreation South Africa Telephone (011) 880 2810 UCB United Cricket Board Email: [email protected] USSA University Sports South Africa www.cricket.co.za

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