THE WELSH LIMITED Annual Report 2014

UNDEB RYGBI CYMRU CYFYNGEDIG Adroddiad Blynyddol 2014 The Purpose of the WRU is to: Promote, foster, encourage, control and improve rugby football in .

The WRU Group’s Vision is three fold: • Take Wales to the world with our rugby • Welcome the world to Wales in our stadium • Define Wales as a nation

The WRU Group’s Mission is based upon: • Leading Welsh rugby to the forefront of the global game in performance and reputation • Maximising participation, performance and enjoyment of the game at all levels • Developing grassroots rugby, supporting clubs, schools and colleges and bringing communities together • Promoting the as a unique, must play, must visit venue

Our Values and Beliefs Our purpose, vision, and mission are underpinned by our values and beliefs which embrace, integrity, excellence, success, courage, family and humour. WRU ARA 2014 1a:Layout 1 22/09/2014 19:25 Page 1

Contents

Financial highlights 02

Neges y Llywydd / President’s message 04

Datganiad y Cadeirydd / Chairman’s statement 06

Crynodeb Prif Weithredwr y Grwˆp / Group Chief Executive’s summary 10

Strategic report 22

Elite rugby review 30

Community rugby review 52

Stadium review 64

Directors’ report 68

Consolidated profit and loss account 72

Consolidated statement of total recognised gains and losses 72

Balance sheets 73

Consolidated cash flow statement 74

Notes to the financial statements 75

Independent auditors’ report 93

Welsh Rugby Union governance 95

Registered office and advisers 97

Board of Directors 98

Executive Board 103

Obituaries 105

Commercial partners 108

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Financial highlights

P&L extract - 2014 & 2013 70

61.0 60 58.5

50

40

31.2 31.9 £ ‘m 30 29.0 27.3

22.5 22.1 20

10 7.0 4.8 3.8 1.7 0.8 2.3 0 2014 2013 2014 2013 Year

Turnover EBITDA

Operational costs Operating profit before exceptional items

Allocations to affiliated organisations Profit before tax & exceptional items

Amount remaining to other costs

Analysis of turnover 65 60 3%3% 1.7 3.1 55 1.5 3.5 50 14.0 13.2 Match income 45 40 Competition income 24% 35 8.9 9.1 Commercial income 30 55% £ ‘m 25 Other event income

20 Other income 32.4 15 32.1 10 5 15% 0 2014 2013 Year

EBITDA = Earnings before interest, depreciation, allocations and exceptional items

2 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014

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Turnover v EBITDA 70

63.2 61.0 58.5 58.5 60 54.3

50

40 £ ‘m

29.0 30 27.6 26.2 27.6 27.3

20 2010 2011 2012 2013 2014

Turnover EBITDA

EBITDA v Allocations 29.0 30 27.6 27.6 26.2 27.3

25

22.1 22.5 20.1 20.0 19.3 20

£ ‘m 15

10

5 2010 2011 2012 2013 2014

Allocations - all EBITDA

Allocations 18 16.9 17.1

16 15.0 15.1 14.2 14

12

10

£ ‘m 8

6 4.5 4.0 4.3 3.8 4 3.1

2 1.2 1.2 1.2 1.2 1.1

0 2010 2011 2012 2013 2014 Regions Community Rugby Semi-professional

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014 3

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Neges y Llywydd

Dennis Gethin, Llywydd / President

Nid oes amheuaeth y gall rygbi Cymru dyfu hyd yn oed yn gryfach os dysgwn y gwersi mae’r flwyddyn ddiwethaf wedi’u gadael. Nawr yw’r amser i ystyried fel mae’n rhaid i Undeb Rygbi Cymru adeiladu hyd yn oed fwy o undod o fewn y gêm yr ymfalchïwn ynddi. Yn ystod y flwyddyn fe’n hatgoffwyd gan y clybiau sy’n aelodau o’r Undeb y bydd gweithio’n glos gyda’n gilydd yn ein gwneud yn gryfach fel corff sy’n mynd rhagddo. Gyda’r Cadeirydd a Phrif Weithredwr y Grwˆp fe ymwelais â phob ardal yn ystod y flwyddyn i drafod strwythur cynghrair newydd SWALEC ac ym mhob lleoliad fe ddaliwyd ar y cyfle i elwa mwy eto o Y Llywydd gyda Dame Rosemary Butler faterion yn ymwneud â rygbi. Mae’n gwbl amlwg, fel y mae’r gêm broffesiynol a rhyngwladol ehangach yn unig yn chwaraewr arbennig ond yn wˆr ifanc hynod esblygu, bod yn rhaid i ni sicrhau y bydd rygbi cymunedol ddymunol ac mae ei agwedd yn nodweddiadol o’r holl yn dal i gyfranogi ac yn parhau’n rhan o’r broses. Mae URC chwaraewyr eraill hynny sydd wedi dioddef anafiadau wedi datgan bod lles y gêm gymunedol bellach yn cyffelyb. flaenoriaeth glir ac mae hynny’n gysur mawr i mi yn fy swyddogaeth fel Llywydd. Nid oes amheuaeth bod Profodd Mathew Rees, aelod selog arall o dîm Gleision dylanwad Cymru ar y llwyfan rhyngwladol yn un amlwg a Caerdydd, Cymru a’r Llewod, sydd wedi ysbrydoli rhaid cofio mai’r clybiau cymunedol sy’n sail i’r llwyddiant cenhedlaeth o chwaraewyr rygbi, ei fod gymaint o arwr ag hynny. erioed yn ystod blwyddyn anodd a blin. Gorchfygodd Mathew Rees ganser ac mae wedi cyflawni’r gamp ryfedd Bu David Pickering yn un o gefnogwyr selog rygbi ar lawr o ennill ei le nôl yng ngharfan Cymru ac mae hyd yn oed gwlad, ac wrth iddo ymadael ei swydd fel Cadeirydd, wedi ychwanegu at nifer ei gapiau a’i benodi’n gapten hoffwn ddiolch yn bersonol iddo am ei waith caled a’i Gleision Caerdydd. arweiniad wrth iddo lywio’r bwrdd yn ystod yr un mlynedd  thristwch mae’n rhaid i fi gofnodi i ni golli drwy angau ar ddeg diwethaf. rai chwaraewyr rhyngwladol Cymreig o fri yn ystod y Profodd i fod yn flwyddyn lle roeddem i weld flwyddyn ddiwethaf. Mae eu cyfraniadau i rygbi Cymru’n yn gadael Bwrdd URC wedi naw mlynedd fel cynrychiolydd dra hysbys ac fe welir eu heisiau’n fawr. rhyngwladol. Roedd yn chwaraewr chwedlonol i Gymru a’r Cofiwn am Denzil Thomas, Darch, Handell Llewod Prydeinig a Gwyddelig a aeth ymlaen i brofi nad Greville a Keith Bradshaw. Wrth gwrs roedd hefyd ddau oedd ei ddeallusrwydd a’i ddawn naturiol yn gyfyngedig o’m cyd-chwaraewyr a’m ffrindiau yng Nghaerdydd, i’r maes chwarae. Rydym ni gyd yn dymuno’n dda i Gerald Roedd Gerry Wallace, yn un o dderbynwyr cyntaf Cap y i’r dyfodol ac yn diolch yn ddiffuant iddo am ei fewnbwn Llywydd yn ystod y flwyddyn ac Ian Robinson. i rygbi Cymru a rygbi’r byd. Gwas da arall ein gêm, Aurwel Morgan, sydd wedi cynrychioli Ardal D gydag anrhydedd Rwy’n diolch i Gadeirydd y Bwrdd, David Pickering, holl ac y gwelir eisiau ei onestrwydd a’i fewnwelediad i rygbi aelodau eraill y Bwrdd, Prif Weithredwr y Grwˆp, Roger wrth iddo yntau adael y Bwrdd. Yr ydym hefyd yn ffarwelio Lewis, a phawb ar ei Fwrdd Gweithredol am eu cymorth gyda Roy Giddings sydd wedi cyfrannu cymaint i rygbi parhaus a’u gwaith caled. Cymru yn ystod ei gyfnod ar y Bwrdd. Cyn terfynu, a gaf i ddymuno pob rhwyddineb i chi gyd a Rhaid i ni hefyd fod yn ymwybodol o’r chwaraewyr hynny phob lwc yn y tymor i ddod. sydd wedi dioddef anafiadau difrifol dros lawer o Diolch flynyddoedd. Mae’n anrhydedd bod yn gadeirydd Ymddiriedolaeth Elusennol Rygbi Cymru â’i phrif ddiben o geisio cyfoethogi ansawdd bywyd y chwaraewyr hynny a’u teuluoedd. Byddwn yn hoffi diolch i Undeb Rygbi Cymru a’r holl glybiau a’r mudiadau hynny syn rhoi eu cefnogaeth ariannol i’r achos clodwiw hwn. Rydym i gyd yn ymwybodol o’r anaf difrifol a ddioddefodd Owen Williams, Dennis Gethin canolwr addawol Gleision Caerdydd a Chymru, tra oedd Llywydd/President yn chwarae i’w Ranbarth yn . Mae Owen nid yn Undeb Rygbi Cymru Cyfyngedig

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President’s message

There is no doubt that Welsh rugby can grow even stronger if we learn the lessons the past year has taught us. Now is the time to reflect on how the Welsh Rugby Union must build even greater unity within this great game of ours. During the year our member clubs served to remind us that working more closely together will make us stronger as a whole going forward. Along with the Chairman and the Group Chief Executive I visited each district during the year to discuss the new SWALEC league structure and at each venue we all grasped the opportunity to cover a lot more ground on rugby issues. It is abundantly clear that as the Meeting delegates at the AGM international and wider professional game evolves apace we must all ensure that community rugby remains totally nice young man and his attitude is typical to all those other engaged and involved in the process. The WRU has declared players who have suffered similar injuries. that the wellbeing of the community game is now a clear priority and that gives me great comfort in my role as Another Blues, Wales and Lions stalwart who has President. There can be no doubt that Wales punches above inspired a generation of rugby players proved he is every bit its weight at international level so we must all remember the hero we all know him to be during what was to prove how our community clubs are the foundation stone upon a gruelling year. Mathew Rees overcame cancer and has which that success is built. achieved the astonishing feat of earning selection back into the Wales squad and has even added to his tally of caps and One of the great supporters of grassroots rugby has been been made Captain of the . David Pickering and, as he departs as Chairman, I want to thank him personally for all his hard work and the Sadly I must record the passing of some great Welsh statesmanship he has shown in guiding the Board across the international players during the past year. Their contributions past eleven years. to Welsh rugby are well known and they will be sadly missed. It proved to be a year in which Gerald Davies announced that he will stand down from the WRU Board after nine We remember Denzil Thomas, William James Darch, Handel years as a national representative. He was a legendary player Greville and Keith Bradshaw. Of course there were also two for Wales and the British and Irish Lions who went on to of my former Cardiff teammates and friends; Gerry Wallace, prove that his intelligence and flair were not confined to the was one of the first recipients of The President’s Cap during field of play. We all wish Gerald well in his future endeavours the year and Ian Robinson. Within the WRU, there was also and thank him sincerely for his input into Welsh and world the sad death of our Coach Development Manager, Phil rugby. Yet another great servant of our game, Aurwel John, who was a tireless worker for the game. Morgan, who has represented District D with distinction and I would like to thank the Chairman of the Board, David whose integrity and insight into rugby will be missed after Pickering, all the other Board members, the Group Chief announcing he will also be standing down from the WRU Executive, Roger Lewis, and all his Executive Board for their Board. We also say farewell to Roy Giddings who has given continued help and hard work. so much to Welsh rugby during his time on the Board. Finally could I wish you all the very best of luck in the We must always also be aware of those players who have forthcoming season. suffered catastrophic injuries over many years. It is an honour to be the chairman of the Welsh Rugby Charitable Thank you Trust whose main purpose is to try to enhance the quality of life of those players and their families. I would like to thank the Welsh Rugby Union and all those clubs and organisation who give their financial support to this most worthwhile cause. We are all aware of the severe injury Dennis Gethin suffered by the most promising Cardiff Blues and Wales President centre Owen Williams while playing for this Region in The Welsh Rugby Union Limited Singapore. Owen is not only a great player but an extremely

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Datganiad y Cadeirydd

David Pickering, Cadeirydd

Mae David Pickering yn aelod o fwrdd RWC Ltd

Fel un sydd ar fin gadael ei swydd fel Cadeirydd Undeb Yn ogystal, bu i ni gyhoeddi ein bwriad i sicrhau cynnydd Rygbi Cymru (URC) rwyf am ddatgan fy nghefnogaeth o 13% yn y buddsoddiad blynyddol yn y grant rygbi a barhaus i’r gêm rwy’n ei charu a’r bobl a roddodd i mi’r datblygu a fydd yn codi i £2.6 miliwn o’r flwyddyn nesaf fraint o gael chwarae rôl mor ganolog yn rygbi Cymru dros ymlaen. yr un mlynedd ar ddeg diwethaf. Mae’r ffigurau hynod gadarnhaol hyn yn dilyn sawl Rwyf am ddweud, heb unrhyw amwysedd, ei bod yn iawn blwyddyn yn ystod fy nghyfnod i yn y swydd lle’r ydym ac yn deg i’r clybiau sy’n aelodau o’r Undeb ddatgan, wedi buddsoddi mewn rygbi ar lawr gwlad a meddu ar y drwy’r sianelau a sefydlwyd yn briodol, eu bod yn dymuno cryfder ariannol i wrthsefyll heriau economaidd ehangach. gweld newid. Rwyf am ddymuno’r gorau i Gadeirydd Fy nod wrth fynd i faes gweinyddu rygbi oedd gwneud y newydd URC yn y dyfodol. gamp yn llwyddiannus eto ar y cae ac oddi ar y cae, ac rwy’n fodlon fy mod i wedi gwireddu fy uchelgeisiau. Heddiw gallaf edrych yn ôl ar flwyddyn lle’r ydym wedi llwyddo’n sylweddol i wireddu ein haddewid i roi Yn ystod y flwyddyn ddiwethaf rydym hefyd wedi cyflwyno blaenoriaeth i’r gêm gymunedol ledled Cymru. cynllun strategol newydd i fuddsoddi mewn Swyddogion Rygbi yn ein hysgolion, a fydd yn ceisio ennyn diddordeb Er ein bod, unwaith yn rhagor, wedi cofnodi canlyniadau yn y gamp ac annog chwaraewyr ifanc i ymuno â’u clybiau ariannol arbennig gyda throsiant o £58.5 miliwn ac elw lleol. cyn treth o £2.4 miliwn, yn bwysicach na hynny, gwelwyd cynnydd yn y buddsoddiad yn ôl i mewn i’r gêm yn ystod Oddi ar y cae mae ein Tîm Gweithrediadau Clybiau yn y flwyddyn a ddaeth i ben ar 30 Mehefin 2014. parhau i helpu ein gwirfoddolwyr, a chynhaliwyd cyrsiau hyfforddi i dros 3,000 o unigolion yn ystod y flwyddyn Cafodd £7.0 miliwn ei ailfuddsoddi mewn rygbi ddiwethaf yn unig. cymunedol, gan gynnwys grant cyfleusterau gwerth £500,000 a chynllun Pwyntiau Cyfranogiad gwerth Mae’n rhaid i mi ddatgan bod y mentrau hyn, a llawer o £750,000. fentrau eraill, yn profi bod llawer o’r feirniadaeth a gafodd

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ei chyfeirio at URC yn ddi-sail mewn gwirionedd. Gwn fod Mae bellach yn bryd i rygbi Cymru roi’r materion y gwaith cynllunio yr ydym wedi’i wneud ar gyfer y gamp gwleidyddol sydd wedi bod mor amlwg dros y deuddeg dros y ddwy flynedd nesaf yn enwedig yn golygu y gallwn mis diwethaf i’r naill ochr a chanolbwyntio ar Gwpan adeiladu ar sylfeini cadarn, ac rwy’n hyderus fy mod i’n Rygbi’r Byd, a fydd yn dechrau mewn blwyddyn. gadael y gamp â fframwaith cadarnhaol iawn o ran yr ochr Mae’n rhaid i ni i gyd fod yn unedig wrth gefnogi Warren fusnes a’r ochr rygbi. Rydym wedi crynhoi’r cyfuniad a’i dîm, ac mae’n rhaid i ni hefyd gefnogi’r wyth gêm yng mwyaf effeithiol o staff rheoli tîm, chwaraewyr ac Nghwpan Rygbi’r Byd, sy’n cynnwys dwy gêm arweinwyr a all efelychu ein perfformiad arbennig yng gogynderfynol, yr ydym wedi llwyddo i’w sicrhau ar gyfer Nghwpan Rygbi’r Byd yn Seland Newydd yn 2011, a Stadiwm y Mileniwm. rhagori ar y perfformiad hwnnw hyd yn oed. Hwyrach mai’r penderfyniadau i gynnal gemau pêl-droed Yma yng Nghymru, mae ein cyflawniadau ar y cae rygbi Olympaidd, gemau Cwpan Rygbi’r Byd a rowndiau terfynol yn rhagorol o ystyried ein bod yn genedl mor fach, a cwpan rygbi Ewrop yn ein stadiwm ni, sef Stadiwm y Chwpan y Byd yw ein cyfle i ddatgan o ddifrif bod rygbi’n Mileniwm, sy’n adlewyrchu ac yn dangos orau ein statws haeddu’r anrhydedd o gael ei alw’n gamp genedlaethol o safbwynt rygbi’r byd. Cymru. Rwy’n credu’n gryf bod angen i’r clybiau fynd ati’n awr i Mae angen i mi ddiolch i gynifer o bobl wrth i mi edrych ganolbwyntio ar y dasg sydd o’n blaenau a gweithio gydag yn ôl ar fy nghyfnod fel Cadeirydd, a byddai’n amhosibl i URC i gynyddu lefelau cyfranogiad, rhoi gwerthoedd rygbi mi enwi’r holl unigolion sy’n ymwneud â rygbi Cymru a ar waith yn agored ac annog mwy o bobl i ymuno â ni i rygbi’r byd sydd wedi fy helpu. gefnogi rygbi. Ond rwyf am ddiolch i Fwrdd URC, a fy Nirprwy Gadeirydd Mae rygbi wedi bod yn rhan ganolog o fy mywyd ers pan Ken Hewitt yn arbennig, am eu cefnogaeth a’u cyngor oeddwn yn fachgen, a bydd yn parhau i fod yn ganolog i doeth. Rwyf hefyd am ddiolch i’r Tîm Gweithredol, ac yn fy mywyd i a bywyd fy nheulu yn ystod y blynyddoedd sydd enwedig Prif Weithredwr y Grwˆp, Roger Lewis, am sicrhau i ddod yma yng Nghymru. bod rygbi yng Nghymru yn canolbwyntio ar fusnes mewn modd mor flaengar. Enillais gapiau dan 15 a dan 19 oed ar ôl i fy niddordeb brwd mewn rygbi gael ei feithrin pan oeddwn yn Ysgol Y clybiau sy’n aelodau o’r Undeb sydd â’r grym i reoli rygbi Cwrt Sart ac Ysgol Uwchradd Dwˆr-y-Felin. Yna cefais fy yng Nghymru, ac rwyf am ddiolch iddynt am y gwaith y nghyflwyno i’r gêm ar lawr gwlad drwy fy nhîm lleol, Clwb maent yn ei wneud bob wythnos yn ein cymunedau ledled Rygbi Llansawel, a phan oeddwn yn chwarae i Glwb Rygbi Cymru. Nhw sy’n darparu’r chwaraewyr, yr hyfforddwyr, y Castell-nedd a Chlwb Rygbi cefais y fraint o gwirfoddolwyr a’r cefnogwyr sy’n sail i’r gamp sy’n ein gynrychioli fy ngwlad 23 o weithiau, ac wyth gwaith fel diffinio ni fel cenedl. capten. Rwy’n cael fy nghyffroi wrth feddwl am y tymor sydd o’n Drwy’r holl brofiadau ac atgofion hynny mae rygbi wedi blaenau wrth i ni nesáu at y wledd honno o rygbi sy’n dod yn rhan annatod ohonof ac rwy’n credu’n gryf y bydd tynnu dwˆr i’r dannedd, sef Cwpan Rygbi’r Byd 2015, ac y gamp yng Nghymru yn mynd o nerth i nerth. rwy’n edrych ymlaen at gwrdd â chynifer ohonoch ag sy’n bosibl dros y misoedd nesaf. Yn ystod fy nghyfnod fel Cadeirydd rydym wedi lleihau’r ddyled graidd o £72 miliwn i £15 miliwn, ac rydym wedi Diolch troi URC yn fusnes y mae’r gymuned fancio a’r gymuned fasnachol yn ymddiried ynddo ac yn ei barchu. Yn ogystal, rydym wedi gweithredu’n ddoeth wrth ganolbwyntio ar greu llwybr datblygu llwyddiannus ar gyfer chwaraewyr sy’n gysylltiedig â Chanolfan Ragoriaeth Genedlaethol newydd URC er mwyn cefnogi tîm hyfforddi David Pickering a thîm cynorthwyol ardderchog dan arweiniad Prif Cadeirydd Hyfforddwr Cymru, . Undeb Rygbi Cymru Cyfyngedig

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Chairman’s statement

David Pickering, Chairman

AGM

As the departing Chairman of the WRU I want to declare The re-investment into community rugby was £7.0m my continued support for the game I love and the people including a facility grant of £500,000 and a Participation who afforded me the privilege of playing such a pivotal Points Scheme of £750,000. role in Welsh rugby for the past eleven years. In addition, we announced the intention to raise the rugby I want to state, without any ambiguity, that it is right and and development grant annual investment by 13% to proper for the member clubs to declare their desire for £2.6m from the year ahead. change through the properly constituted channels. I want These exceptionally positive figures follow in the wake of to wish the new Chairman of the WRU all the very best for a number of recent years under my tenure within which the future. we have invested in grassroots rugby with the financial I can today look back on a year within which we have strength to counter wider economic challenges. I entered measurably delivered on our promise of prioritising the rugby administration with the aim of restoring success to community game across Wales. the game both on and off the field and I am satisfied that I have achieved my ambitions. Whilst we have again posted an impressive set of financial results recording a turnover of £58.5m and a profit before In the past year we have also unveiled a new strategic plan tax of £2.4m, more importantly there was increased to invest in Rugby Officers within our schools aimed at investment back into the game for the year ended 30 June igniting interest in our game and urging young players to 2014. go out and join their local clubs.

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Off the field our Club Operation Team is continuing to help Now Welsh rugby must put aside the politics of the past our volunteers with training courses for more than 3,000 twelve months and focus on the which individuals across the last year alone. is just a year away. I have to declare that these and many other initiatives serve We must all be as one in getting behind Warren and his to prove that, in fact, much of the criticism aimed at the team while we must also support the eight RWC games WRU has lacked foundation. I know that through the including two quarter finals we have managed to secure planning we have put in place for the game particularly for the Millennium Stadium. across the next two years we can build on positive Here in Wales we punch far above our weight in rugby and foundations and I am confident that I leave the game in a the World Cup is our opportunity to truly proclaim that we hugely positive framework both in its business and its rightly deserve the accolade of being called the National rugby. We have assembled the most effective combination Sport of Wales. of team management, players and leaders who can emulate and even improve on our wonderful performance There are so many people for me to thank as I look back in the World Cup of 2011. Our on my time as Chairman and it would be impossible for standing in the world game is perhaps best represented me to mention all the names of the individuals in Welsh and symbolised in the decisions to hold Olympic soccer and who have helped me. matches, Rugby World Cup games and European rugby I do want to thank the Board of the WRU and in particular finals at our Millennium Stadium. my Deputy Chairman Ken Hewitt for their wise counsel It is my firm belief that it is now down to the clubs to focus and support. I also want to thank the Executive and in on the task at hand and work with the WRU to increase particular the Group Chief Executive, Roger Lewis, for the participation and embrace the values of rugby openly and cutting edge business focus they have brought to Welsh to encourage more people to join with us in supporting rugby. rugby. The control of Welsh rugby is firmly in the grip of our Rugby has been my life since I was a boy and it will member clubs and I want to thank them for the work they continue to be a central focus for me and my family in the do week in week out in communities throughout Wales. years ahead here in Wales. They provide the players, coaches, volunteers and supporters who make the game which defines us as a I won caps at U15 and U19 level after my love of rugby nation. was fostered through Cwrt Sart and then Dwr Y Felin Comprehensive School. Then I was introduced to the I am savouring the prospect of the season ahead as we grassroots game through my home team of Briton Ferry edge towards that mouth-watering spectacle of Rugby RFC and through RFC and Llanelli RFC I went on to World Cup 2015 and I look forward to meeting as many have the honour of representing my country 23 times, of you as possible in the months ahead. eight times as Captain. Thank you Through all those experiences and memories, rugby has become welded into my being and I truly believe the game in Wales is set to go from strength to strength. Through my chairmanship we have reduced core debt from £72m to £15m and turned the WRU into a business trusted and respected by the banking and commercial community. We have also rightly focused on building a successful player development pathway linking into a new WRU David Pickering National Centre of Excellence to support a fantastic Chairman coaching and backroom team under Wales Head Coach The Welsh Rugby Union Limited Warren Gatland.

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Crynodeb Prif Weithredwr y Grwˆp

Roger Lewis, Prif Weithredwr y Grwˆp

Hyfforddiant cymorth cyntaf

Bu’n flwyddyn o uchafbwyntiau ac isafbwyntiau mawr i Mae penawdau 2013/14 o ran Rygbi Cymunedol yn Grwˆp Undeb Rygbi Cymru (URC), gyda llwyddiant o cynnwys y canlynol: safbwynt ariannol ar y naill law a thrafodaethau hirfaith ar Clybiau y llaw arall i gwblhau Cytundeb Gwasanaethau Rygbi newydd gyda’r pedwar rhanbarth ynghyd â thrafferthion • cyflwynwyd strwythur newydd ar gyfer Cynghreiriau wrth gyflwyno strwythur newydd ar gyfer y Cynghreiriau Cenedlaethol SWALEC er mwyn creu mwy o gemau lleol Cenedlaethol. ac osgoi gorfodi clybiau i deithio’n bell lle bo hynny’n bosibl Nid oes amheuaeth nad oedd y Cyfarfod Cyffredinol Eithriadol a gynhaliwyd ym mis Mehefin 2014 yn garreg • cafodd 3,000 o wirfoddolwyr eu hyfforddi ynghylch filltir arwyddocaol yn ystod y flwyddyn, ac roedd barn a cynlluniau sy’n ceisio gwella’r modd y mae clybiau ar lawr safbwyntiau’r clybiau sy’n aelodau o URC wedi dod ag gwlad yn cael eu gweinyddu ymdeimlad o gydbwysedd i amgylchedd rygbi Cymru. • cynhaliodd cynllun recriwtio “Join the Beat” 122 o Mae’r Grwˆp yn cyrraedd diwedd y flwyddyn mewn sefyllfa ddigwyddiadau rygbi ledled Cymru lawer cryfach ac unedig gyda’r Cytundeb Gwasanaethau • manteisiodd 183 o glybiau ar y cynnig i gyflwyno Rygbi newydd ar waith, gyda gêm gymunedol ac Adran gwefannau clybiau URC er mwyn gwella’r modd rydym Uwch-gynghrair sy’n cael eu hariannu’n well, a gyda’r yn cyfathrebu wybodaeth galonogol y bydd Warren Gatland bellach yn aros yn ei swydd fel Prif Hyfforddwr nes 2019, ac mae • parhaodd y fenter i roi’r gorau i dalu chwaraewyr mewn perfformiad ariannol cryf y Grwˆp yn sail i hyn i gyd. clybiau cymunedol, wrth i 224 o glybiau lofnodi addewid yn eu cyfansoddiad yn cadarnhau na fyddant yn talu Dyma grynhoi’r pwyntiau allweddol ar gyfer y flwyddyn a chwaraewyr ddaeth i ben yn 2014: • crëwyd Llawlyfr Gweithrediadau Clybiau Rygbi Cymru Mae Rygbi Cymunedol yn cynnwys y gamp i gyd y tu newydd, a bydd yn cael ei anfon at bob clwb hwnt i’r amgylchedd proffesiynol, ac mae’n cynnwys strwythurau a chystadlaethau ein Cynghreiriau • lansiwyd menter ‘Rugbyforce’ Natwest – Creu Clwb Cenedlaethol, ein systemau a’n mentrau cymorth ynghyd Cynaliadwy – a chynhaliwyd 18 o weithdai er mwyn â rygbi yn ein hysgolion a’n colegau. helpu gwirfoddolwyr i rannu arfer da.

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• cynhaliodd Swyddogion Diogelu clybiau URC 46 o • dathlodd y fenter Sêr Rygbi ei thrydydd tymor ddigwyddiadau hyfforddi i glybiau er mwyn hybu’r llwyddiannus protocolau sy’n ceisio amddiffyn pobl ifanc a phobl sy’n • cynhaliodd y rhaglen Sêr Bach, i blant rhwng tair a saith agored i niwed oed, 205 o gyrsiau i 1,397 o blant • ffurfiwyd cysylltiad ag elusen Calonnau Cymru er mwyn • cynhaliodd y rhaglen Sêr Iau 35 o wersylloedd i 2,119 o rhannu diffibrilwyr â phob un o’r clybiau blant • cynhaliwyd prosiect ar gyfer y gêm gymunedol i greu • cafodd dros 100 o blant eu dewis i gynrychioli protocolau newydd ar gyfer adnabod cyfergyd gweithgareddau Sêr Rygbi mewn digwyddiadau mawr • cafodd dros 2,500 o chwaraewyr rhwng 15 a 30 oed eu • cafodd dros 300 o blant eu gwahodd i wylio’r tîm hadnabod ar gronfa ddata o chwaraewyr y tu allan i cenedlaethol yn hyfforddi yn y Ganolfan Ragoriaeth Gymru Genedlaethol • parhawyd i wneud gwaith ar Bolisi Iaith Gymraeg a • cyflwynwyd rhaglen Sêr Rygbi Anabl URC a mynychodd gwefan ddwyieithog URC, sydd bellach wedi cael eu 355 o blant a phobl ifanc wersylloedd cyflwyno Cyllid Ysgolion • byddwn yn sicrhau cynnydd o 13% yn y cyllid a roddir i’r • cyflwynwyd strategaeth newydd ar gyfer creu cysylltiad gêm gymunedol, a fydd yn codi i £2.6 miliwn o’r tymor rhwng rygbi yn yr ysgolion a rygbi yn y clybiau yn y nesaf ymlaen dyfodol • bydd grant cyfleusterau gwerth £500,000 yn cael ei • darparwyd cyllid ar gyfer cyflwyno Swyddogion Rygbi fuddsoddi mewn clybiau ar lawr gwlad o dymor 2014/15 mewn dros 40 o ysgolion a cholegau ymlaen • cyflwynwyd prosiect i aildrefnu’r strwythur cystadlaethau • penderfynodd Bwrdd URC ariannu cynllun Pwyntiau a chynghreiriau ar draws ysgolion, colegau a chlybiau i Cyfranogiad gwerth £750,000, a bydd yr arian hwn yn greu strwythur chwarae cydlynol a chydweithredol daladwy yn ystod tymor 2014/15 • cymerodd dros 7,000 o bobl ifanc ran mewn • bu i 103 o glybiau elwa o’r ffaith bod £750,000 wedi’i digwyddiadau chwarae rygbi ar y stryd ac mewn sgwâr roi ar ffurf grant cyfleusterau URC o’r flwyddyn a ddaeth a drefnwyd gan URC er mwyn annog rhagor o bobl ifanc i ben yn 2013 i gymryd rhan yn y gamp • cyflwynwyd cynllun newydd ar gyfer dosbarthu • cymerodd 2,679 o chwaraewyr dan 14 oed ran mewn tocynnau, sy’n golygu y gall pob clwb ennill hyd at sesiynau datblygu a drefnwyd, sy’n 128% yn uwch na’r £2,000 a chit rygbi targedau Datblygu swyddogion gemau a hyfforddwyr • cymerodd 1,398 o chwaraewyr ran yn rhaglen ddatblygu Tarian Dewar i rai dan 14 oed – cynnydd o 155% • penododd URC swyddogion gemau ar gyfer dros 8,000 o gemau cymunedol • cynhaliwyd rhaglenni datblygu ar gyfer 802 o chwaraewyr dan 15 oed – cynnydd o 122% • mynychodd 567 o ymgeiswyr y cwrs dyfarnu lefel 1 • cynlluniwyd Fframwaith Llythrennedd Corfforol • mynychodd 440 o hyfforddwyr gyrsiau gwobr tag Cenedlaethol mewn cydweithrediad â Chwaraeon • daeth 400 o ddisgyblion ysgolion uwchradd yn gymwys Cymru i hyfforddi yn yr ysgolion cynradd lleol sy’n bwydo eu • cyflwynwyd y Cynllun Achredu Ysgolion Rygbi mewn 45 hysgol uwchradd o ysgolion • cafodd Rheolwr Adnoddau Datblygu Hyfforddwyr • cafodd y gynghrair dan 18 oed a gynhelir bob dydd newydd ei recriwtio Mercher fwy o sylw ar y teledu, mewn partneriaeth ag • cynhaliwyd Cynhadledd Genedlaethol Hyfforddwyr y Bwrdd Rygbi Rhyngwladol (IRB) yng Nghymru

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Crynodeb Prif Weithredwr y Grwˆp

Diwrnod agored lletygarwch

Nesaf, rwyf am droi fy sylw at Stadiwm y Mileniwm, • cynhaliwyd cyfres o ddigwyddiadau er mwyn dechrau y mae Undeb Rygbi Cymru yn berchen yn llawn arno ac yn edrych ymlaen at y gemau a fydd yn cael eu cynnal yn y ei redeg, ac y mae ei holl brosesau masnachol a phrosesau stadiwm yn ystod Cwpan Rygbi’r Byd 2015. rheoli busnes wedi’u hymgorffori yng ngwaith y Grwˆp. Isadeiledd Mae penawdau’r flwyddyn o ran Stadiwm y • cyhoeddwyd cynlluniau i osod cae chwarae newydd gan Mileniwm yn cynnwys y canlynol: gwmni Desso, sy’n gyfuniad o laswellt naturiol a Digwyddiadau glaswellt artiffisial • dangosodd arolwg annibynnol fod y stadiwm yn dod â • derbyniodd y stadiwm ‘Dystysgrif Ragoriaeth’ gan gwerth £130 miliwn i’r economi ehangach yng Nghymru TripAdvisor bob blwyddyn ac yn cynnal 2,500 o swyddi llawn amser • cyflwynwyd system ceblau darlledu integredig, sy’n • yn ogystal, darganfu’r adroddiad fod 70% o’r sawl sy’n golygu mai dim ond cysylltu â’r rhwydwaith ceblau sy’n ymweld â’r stadiwm yn dod o’r tu allan i Gymru bodoli eisoes y mae’n rhaid i ddarlledwyr sy’n ymweld â ni ei wneud, a bydd hynny’n eu galluogi i ddarlledu gan • aeth 60,000 o bobl ar daith dywys swyddogol o gwmpas ddefnyddio sawl camera y stadiwm – 10% yn uwch na’r flwyddyn flaenorol • ymunodd y stadiwm â chais i gynnal gemau pêl-droed • cynhaliwyd rownd derfynol olaf erioed y Cwpan Ewro 2020 UEFA yng Nghymru Heineken yn y stadiwm • cyflwynwyd system gwirio tocynnau newydd sy’n • cynhaliwyd seremoni agoriadol Cwpan y Byd Rygbi’r defnyddio cod bar – sy’n system gynt a mwy cywir Gynghrair a gemau rhwng Lloegr ac Awstralia a rhwng Cymru a’r Eidal yn y stadiwm • cyflwynwyd cyfleuster ‘argraffu tocynnau gartref’ er mwyn i gefnogwyr brynu tocynnau • cymerodd pob un o’r pedwar rhanbarth ran yn yr ail ddigwyddiad ‘Dydd y Farn’ i gael ei gynnal, a oedd yn • gosodwyd bwrdd rhuban LED newydd ar gyfer cynnwys dwy gêm gynghrair, un ar ôl y llall hysbysebu ar hyd haen ganol y stadiwm • dychwelodd y seren roc Bruce Springsteen i’r stadiwm • cafodd prosiect i wella’r pedair ystafell newid yn y gyda’i daith ‘Wrecking Ball’ stadiwm ei gymeradwyo • cyrhaeddwyd carreg filltir o £500,000 o safbwynt yr arian • cafwyd cytundeb ar gyfer gosod Canolfan Feddygol a gafodd ei gasglu mewn bwcedi i elusennau yn ystod newydd yn y stadiwm gemau rygbi rhyngwladol Cymru

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Nesaf, rwyf am droi fy sylw at Rygbi Elît, sy’n cynnwys chwaraewyr i chwarae i’r tîm cenedlaethol, a fydd yn pob un o’r carfanau cenedlaethol, y gêm ranbarthol, y canolbwyntio ar unigolion sy’n chwarae yng llwybr datblygu chwaraewyr a’r holl strwythurau staffio a Nghymru chymorth. Mae hefyd yn cynnwys y cyllid a roddir yn • bydd nifer y chwaraewyr tramor y gall y rhanbarthau uniongyrchol i’r pedwar rhanbarth yn ogystal â’r broses o eu cynnwys yn eu carfanau yn cael ei gyfyngu i drosglwyddo arian a geir gan gystadlaethau a gwaith chwech ariannu Uwch-gynghrair led-broffesiynol y Principality. • bydd academïau rhanbarthol yn cael eu trosglwyddo Mae penawdau’r flwyddyn o ran Rygbi Elît yn i’r rhanbarthau y maent yn eu cynrychioli cynnwys y canlynol: • mae URC yn cadw’r hawl i drefnu hyd at 13 o gemau Y lefel ryngwladol rhyngwladol Cymru y flwyddyn • cafodd contract Warren Gatland ei ymestyn nes 2019 • mae’r Cytundeb Gwasanaethau Rygbi yn rhoi’r hawl • cafodd ei gyflogi fel y chwaraewr cyntaf i ailgyflwyno gemau rhyngwladol tîm Cymru ‘A’ i gael contract deuol cenedlaethol • bydd chwaraewyr rhanbarthol ar gael i gael eu dewis • cyhoeddodd URC gynnig i gynnal Cwpan Rygbi Saith ar gyfer carfan saith bob ochr Cymru Bob Ochr y Byd yn 2018 • cyhoeddwyd manylion Cwpan Pencampwyr Rygbi Ewrop • daeth BT yn noddwr crysau tîm saith bob ochr Cymru newydd unwaith eto • rhoddwyd hwb i gynghrair PRO12 Guinness gan mai • ffurfiodd Gullivers bartneriaeth ag URC fel noddwr dyma’r llwybr i mewn i gystadlaethau Ewrop teithio swyddogol rygbi Cymru • cafodd gwaith datblygu hyfforddwyr ei wobrwyo wrth i • cyflwynwyd Capiau’r Llywydd a’u dyfarnu i chwaraewyr hyfforddwyr gorau URC gael eu recriwtio gan y a chwaraeodd dros Gymru mewn rhai gemau lle na rhanbarthau ddyfarnwyd capiau llawn • mae adolygiad gan y Pennaeth Rygbi yn paratoi’r ffordd • bu URC yn cyd-gynhyrchu rhaglen ddogfen goffa ar i gynyddu cyfranogiad er mwyn rhoi mwy o chwaraewyr gyfer ITV Cymru gyda Barn Media ynghylch yr 13 o ar y llwybr i fod yn chwaraewyr elît chwaraewyr rhyngwladol Cymru a fu farw yn ystod y • enillodd y dwbl am yr ail flwyddyn yn olynol Rhyfel Byd Cyntaf drwy orffen ar frig Uwch-gynghrair y Principality a chipio • cyrhaeddodd prop Gleision Caerdydd, , Cwpan SWALEC garreg filltir drwy ennill 100 o gapiau dros ei wlad • enillodd Glynebwy y Bencampwriaeth gan sicrhau Y lefel broffesiynol a’r lefel led-broffesiynol dyrchafiad i Uwch-gynghrair y Principality • cytunwyd ar Gytundeb Gwasanaethau Rygbi newydd ac • atgyfnerthodd tîm gogledd Cymru – RGC 1404 – ei arloesol gyda’r pedwar rhanbarth nes 2020, sy’n statws ym maes rygbi cynrychioliadol gan orffen yn cynnwys y manylion canlynol: drydydd yn y Bencampwriaeth • bydd y Cytundeb Gwasanaethau Rygbi yn cyfrannu • cafwyd cynnydd o 19% yn y cyllid a ddarperir i’r gêm dros £60 miliwn i’r gêm ranbarthol yn ystod oes y led-broffesiynol yng Nghymru ar gyfer tymor 2014/15 Cytundeb wrth i’r ffigur hwnnw godi i £1.5 miliwn • bydd contractau deuol cenedlaethol yn cael eu cynnig • cyflwynwyd cystadleuaeth Saith Bob Ochr Fosters, sy’n i chwaraewyr allweddol gystadleuaeth flynyddol newydd i glybiau’r Uwch- gynghrair a thîm RGC 1404 • bydd y Cytundeb Gwasanaethau Rygbi yn darparu £8.7 miliwn y flwyddyn i’r rhanbarthau, i’w wario ar Rygbi Merched gontractau chwaraewyr sy’n gymwys i chwarae i • cafwyd mwy o ymwneud â rygbi merched ar lefel Gymru ryngwladol wrth i mi barhau’n Gadeirydd penodedig • bydd polisi newydd yn cael ei gyflwyno ar gyfer dewis Pwyllgor Pencampwriaeth y Chwe Gwlad i Ferched

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Crynodeb Prif Weithredwr y Grwˆp

Sam Warburton yn arwyddo’i gytundeb

• cafodd cyllid gan y Bwrdd Rygbi Rhyngwladol ei flwyddyn, a bydd argymhellion ar gyfer newid yn cael eu ddefnyddio i hybu cyfranogiad mewn rygbi merched cyflwyno i’w cymeradwyo. Mae penawdau’r flwyddyn o ran materion ariannol Dyma’r rhagolygon ar gyfer 2014/15 a’r a masnachol a materion busnes yn cynnwys y blaenoriaethau ar gyfer y flwyddyn sydd i ddod: canlynol: Yn ystod y flwyddyn sydd i ddod bydd Grŵp URC yn • cofnodwyd elw cyn treth o £2.4 miliwn ar gyfer y parhau i weithio yn unol â’r nodau a gyhoeddwyd yn ein flwyddyn cynllun pum mlynedd sy’n esblygu, a gyflwynwyd yn y lle cyntaf yn 2007. Bydd yn flwyddyn sy’n llawn cyfleoedd • sicrhaodd URC drosiant o £58.5 miliwn ar gyfer y cyffrous lle byddwn yn parhau’n effro i’r heriau ariannol ac flwyddyn economaidd ehangach a fydd yn ein hwynebu. Mae’n Mae llofnodi’r Cytundeb Gwasanaethau Rygbi gyda’r hanfodol ein bod yn gwneud y defnydd gorau posibl o’r pedwar rhanbarth yn golygu bod gan rygbi Cymru wybodaeth sydd gennym am natur gylchol ein busnes. gytundeb arloesol a fydd yn gwarchod ac yn meithrin y Caiff y blaenoriaethau yr ydym wedi’u gosod ar ein cyfer gêm broffesiynol yng Nghymru am y chwe blynedd nesaf ein hunain yn ystod y flwyddyn eu mesur yn erbyn sefyllfa o leiaf. Mae’r Contractau Deuol Cenedlaethol a gaiff eu ariannol ein busnes. Rwy’n dal yn hyderus y byddwn yn creu’n darparu arf pwerus i URC wrth geisio cadw mwy o gallu cyflawni’n effeithiol yng nghyswllt ein cylch gwaith chwaraewyr rhyngwladol yng Nghymru. er mwyn rheoli a datblygu camp genedlaethol Cymru. Yn sgîl y trafodaethau ynghylch y Cytundeb Dyma ein blaenoriaethau ar gyfer y deuddeg mis nesaf: Gwasanaethau Rygbi cafwyd cadarnhad y bydd Syr Wyn • cefnogi’r Garfan Genedlaethol wrth iddi baratoi ar gyfer Williams yn parhau’n Gadeirydd Bwrdd y Gêm Ranbarthol Cwpan Rygbi’r Byd 2015 Broffesiynol. Roedd hwnnw’n gyhoeddiad i’w groesawu a bydd ef yn sicr yn ychwanegu at y pwys a roddir ar • paratoi i gynnal yn llwyddiannus wyth o gemau drafodaethau’r corff pwysig hwn. rhyngwladol Cwpan Rygbi’r Byd yn Stadiwm y Mileniwm Cafodd yr adolygiad llywodraethu a gynhaliwyd dan • cyflwyno a rheoli’r cae chwarae newydd gan Desso yn gadeiryddiaeth Syr Robert Owen ei gwblhau yn ystod y Stadiwm y Mileniwm erbyn gemau prawf yr Hydref

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• defnyddio’r system ceblau darlledu pwrpasol newydd yn Wrth edrych yn fanwl ar ein cyflawniadau yn ystod y y stadiwm flwyddyn a ddaeth i ben yn 2014 gwelir tystiolaeth glir ein bod yn buddsoddi yn y gamp yn unol â’r blaenoriaethau a • gweithio gyda’n pedwar rhanbarth i ddatblygu rygbi nodwyd yn ein cynllun pum mlynedd. proffesiynol yng Nghymru drwy’r amcanion a’r blaenoriaethau a nodwyd yn y Cytundeb Gwasanaethau Nid oes amheuaeth nad yw sylwadau gan y cyhoedd a’r Rygbi newydd cyfryngau wedi bwrw cysgod dros y deuddeg mis diwethaf, ac mae rheini’n aml wedi ceisio effeithio ar ein • gwella Uwch-gynghrair y Principality drwy delerau’r ffocws a chuddio ein llwyddiannau. Ni allwn ganiatáu i Cytundeb Cyfranogiad presennol hynny fynnu’r sylw na thynnu ein meddwl oddi ar ein • parhau i annog datblygiad rygbi cynrychioliadol yn y gwaith. gogledd Bydd y flwyddyn nesaf yn un hynod o brysur ar bob lefel, • datblygu carfan Saith Bob Ochr Cymru drwy warantu gan fod Cwpan Rygbi’r Byd ar y gorwel ar gyfer y gêm elît bod mwy o chwaraewyr o safon yn cael eu dewis ynghyd â chystadlaethau newydd ar lefel Ewropeaidd ar • cyflwyno Rheolwr Rygbi Merched Cenedlaethol er mwyn gyfer ein rhanbarthau a gwell cynghrair PRO12 Guinness. datblygu rygbi merched O ran y gêm gymunedol, rydym yn dechrau ar strategaeth newydd a fydd yn adfer y cysylltiadau rhwng ein hysgolion • rhoi protocolau a strwythurau’r Adran Rygbi ar waith, a a’n clybiau. Y nod yn y fan hon yw gwella lefelau fydd yn helpu i gynyddu cyfranogiad yn y gêm cyfranogiad a chryfhau rygbi Cymru yn gyffredinol drwy gymunedol yn y pen draw hybu rygbi ar lawr gwlad. • gwella’r cysylltiad â phob un o’r 335 o aelodau, ac yn Mae’r ffaith bod Stadiwm y Mileniwm yn parhau i esblygu enwedig y clybiau sy’n aelodau o’r Undeb yn dyst i’n huchelgais. Mae canlyniadau’r arolwg ynghylch • trefnu bod y Llywydd, y Cadeirydd a Phrif Weithredwr y effaith economaidd a gaiff eu crynhoi uchod yn dangos yn Grwˆp yn cynnal ymweliadau ffurfiol ag ardaloedd er glir cymaint o gaffaeliad yw’r stadiwm i Gymru. mwyn gwella adborth gan glybiau Edrychwn ymlaen â hyder a chyffro at y flwyddyn heriol • cyflwyno newidiadau sylweddol i ddulliau llywodraethu sydd o’n blaenau, sy’n llawn cyfleoedd i rygbi Cymru. os caiff hynny ei gymeradwyo gan yr aelodau Hoffwn ddiolch i bawb sy’n rhan o’r siwrnai hon, o’n • dyrannu gwerth £750,000 o offer i glybiau cymunedol chwaraewyr, ein cefnogwyr, ein gwirfoddolwyr, ein drwy’r cynllun Pwyntiau Cyfranogiad rhanbarthau a’n clybiau i’r staff ardderchog sydd gan Grwˆp URC. Hoffwn roi teyrnged yn arbennig i gyflawniadau • datblygu gweithdai ‘Rugbyforce’ Natwest er mwyn helpu aruthrol ein Cadeirydd, David Pickering. Wrth edrych i’r clybiau i wella eu rheolaeth ariannol dyfodol rwy’n hyderus y byddwn, drwy weithio gyda’n • gweithredu’r rhaglen gydweithredu ar gaeau artiffisial gilydd mewn undod a chytgord, yn gallu parhau i 3G gyda champau eraill a Chwaraeon Cymru er mwyn ddatblygu a hybu ein gêm. cyflwyno arwynebau hyfforddi a chwarae o’r radd flaenaf Diolch yn fawr iawn ledled Cymru Casgliad Mae’r Adroddiad Blynyddol hwn yn cynnig tystiolaeth sylweddol bod Undeb Rygbi Cymru wedi parhau i ganolbwyntio ar yr hyn sy’n bwysig yn ystod blwyddyn anodd. Rydym wedi cyflawni’r blaenoriaethau a gyhoeddwyd gennym ac wedi ymdrechu i helpu rygbi Cymru i esblygu a datblygu wrth i’r unfed ganrif ar hugain Roger Lewis, fynd rhagddi ac wrth i ni wynebu oes lle mae rygbi Prif Swyddog Gweithredol y Grwˆp proffesiynol a rygbi cymunedol yn wynebu newidiadau sy’n Undeb Rygbi Cymru Cyfyngedig digwydd yn fwyfwy cyflym.

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Group Chief Executive’s summary

Roger Lewis, Group Chief Executive

Womens’ University Tournament

It has proved to be a year of exceptional highs and lows In Community Rugby the headlines for 2013/14 for the WRU Group, with financial success balanced include: against protracted negotiations to conclude a new Rugby Clubs Services Agreement (“RSA”) with the four Regions combined with difficulties over the introduction of a new • a new structure introduced for the SWALEC National National League structure. Leagues to create more local derbies and avoid long distance travel where possible There is no doubt that the Extraordinary General Meeting held in June 2014 was a significant landmark within the • 3,000 volunteers were trained on schemes aimed at year and the views and opinions of the WRU’s member improving the administration of grassroots clubs clubs served to inject a sense of balance into the Welsh • the “Join the Beat” scheme hosted 122 rugby events rugby environment. across Wales The Group can emerge from the year far stronger and • 183 clubs took up the offer of introducing WRU Club unified with the new RSA in place, a better funded Websites to improve our communication community game and Premiership Division plus the reassuring knowledge that Warren Gatland will now • the initiative to stop the payment of community club remain as Head Coach until 2019, all underpinned by a players continued with 224 clubs including a pledge in very strong financial performance. their constitutions that the practice will not take place The key points of YE14 are summarised below: • a new Welsh Rugby Club Operations Manual was created and will be sent to all clubs Community Rugby embraces the entire game outside the professional environment and includes our National • the Natwest Rugbyforce “Creating a Sustainable Club” League structures and competitions, our support systems initiative was launched with 18 workshops to help and initiatives along with schools and college rugby. volunteers share good practice

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• WRU Club Safeguarding Officers hosted 46 club training • more than 300 children invited to watch the National events to boost the protocols aimed at protecting young Team train at the National Centre of Excellence and vulnerable people • the WRU Disability Rugby Stars Programme was • a link up with the Welsh Hearts charity to distribute introduced with 355 youngsters attending camps defibrillator machines to all clubs has begun Funding • a project undertaken to create new concussion • a 13% increase in funding to the community game to recognition protocols for the community game £2.6m from next season. • more than 2,500 players aged between 15 and 30 • a £500,000 facilities grant investment in grassroots clubs identified on an exiles database payable from the 2014/15 season • work continued on a WRU Policy and • a WRU Board decision to fund a £750,000 Participation bi-lingual website which have now been introduced Points scheme payable in the 2014/15 season Schools • 103 clubs benefited from the WRU Facility Grant award • a new strategy introduced to align schools and club of £750,000 from YE13 rugby in the future • a new ticket distribution scheme which can earn each • funding provided to introduce Rugby Officers into more club up to £2,000 plus rugby kit than 40 schools and colleges Match Officials and Coach Development • a project to revamp the league and competition structure • the WRU appointed match officials for more than 8,000 across schools, colleges and clubs to create a coordinated community games and collaborative playing structure • a total of 567 candidates attended the Level One • more than 7,000 young people took place in WRU Street refereeing course Rugby and Cage Rugby events to encourage involvement in the sport • 440 coaches attended Tag award courses • 2,679 U14 players took part in organised development • 400 secondary school pupils qualified to coach at their sessions – 128% above targets local primary feeder schools • the U14 Pre Dewar Shield Development Programme • a new Coach Development Resource Manager was involved 1,398 players – 155% up recruited • development programmes for 802 U15 players – up • an IRB National Coaching Conference was hosted in 122% Wales • a National Physical Literacy Framework designed in Next, the Millennium Stadium, which is fully owned conjunction with Sport Wales and operated by the Welsh Rugby Union with all its commercial and business management integrated within • the School of Rugby Accreditation Scheme rolled out to the Group. 45 schools The Millennium Stadium headlines for the year • the U18 Wednesday league achieved more TV coverage include: in partnership with S4C Events • the Rugby Stars initiatives celebrated its third successful season • an independent survey showed the Stadium delivers £130m into the wider economy of Wales annually and • the Little Stars Programme for three to seven year olds supports 2,500 full time jobs hosted 205 courses with 1,397 children attending • the report also found that 70% of the visitors to the • the Junior Stars hosted 35 camps for 2,119 children Stadium come from outside Wales • more than 100 children selected to represent the Rugby Stars activities at major events

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Group Chief Executive’s summary

EGM

• 60,000 people took official guided tours of the Stadium • the Stadium achieved a Tripadvisor ‘Certificate of – 10% up on the previous year Excellence’ • the last ever Heineken Cup Final was hosted at the • a new integrated broadcast cabling system was Stadium announced which means visiting broadcasters simply have to plug into the a cabling network which allows • hosting the opening ceremony of the them to run multi-camera coverage World Cup and games between and Australia and Wales versus Italy • a new, quicker and more accurate barcode ticket check system was introduced • all four Regions took part in the second Judgement Day double header • a “print at home” facility was introduced for fans to purchase tickets • the rock superstar Bruce Springsteen returned to the Stadium with his Wrecking Ball tour • a new LED ribbon board for advertising was installed on the middle tier • charity bucket collections at the Stadium achieved the £500,000 milestone at Wales rugby international games • a project to improve all four Stadium changing rooms was approved • the countdown to Rugby World Cup 2015 games at the Stadium began with a series of events • agreement for the installation of a new Stadium Medical Centre Infrastructure • plans to install a new Desso part grass part artificial pitch were unveiled and are well advanced

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On to Elite Rugby, which includes all the national squads, • the RSA provides the right to reintroduce A team the Regional game, the player development pathway and international games all staffing and support structures. This also includes the • Regional players will be available for Wales Sevens direct funding for the four Regions in addition to the pass squad selection through of competition money and the funding of the semi-professional Principality Premiership Division. • a new European Champions Cup competition unveiled The Elite Rugby headlines for the year include: • the Guinness PRO12 boosted as the qualification route into European competition International • coach development rewarded with WRU high flyers • Warren Gatland contracted until 2019 recruited by the Regions • Sam Warburton became the first National Dual Contract • a review by the Head of Rugby sets a course for greater player participation to put more players onto the elite pathway • the WRU announced a bid to host the 2018 World Cup • Pontypridd won the Principality Premiership League and Sevens SWALEC Cup double for the second successive season. • BT returned as shirt sponsor to the Wales Sevens team • won the Championship Division and secured • Gullivers partnered the WRU as Welsh rugby’s official promotion to the Principality Premiership Division travel sponsor • the team RGC1404 consolidated their • President’s Caps were introduced and awarded to those status in representative rugby with a third place finish in who played for Wales in certain uncapped games the Championship Division • the WRU co-produced a commemorative documentary for ITV Wales with Barn Media on the 13 Welsh internationals who died in World War 1 • the Cardiff Blues prop forward Gethin Jenkins achieved the 100 cap milestone Professional and Semi Professional • a new and ground-breaking RSA with the four Regions until 2020 including the following: • the RSA delivers more than £60m into the Regional game during its term • National Dual Contracts for key players are being introduced • the RSA delivers £8.7m a year to the Regions to be spent contracting Welsh qualified players • a new senior player selection policy focusing on Wales based individuals is being introduced • a six player limit on foreign players is introduced • Regional academies to be transferred to the Regions they represent • WRU retains the right to arrange up to 13 Wales international games a year

Launching the Scorch Magazine

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Group Chief Executive’s summary

Opening Centre of Sporting Excellence

• a 19% boost in funding to £1.5m for the semi- The confirmation that Sir Wyn Williams will continue as professional game in Wales for the 2014/15 season the chair of the Professional Regional Game Board was a welcome outcome of the RSA negotiations and he will • a new annual Fosters Sevens competition including the certainly add weight to the deliberations of this important Premiership clubs and RGC1404 was introduced body. Women’s Rugby The governance review carried out under the chairmanship • greater involvement in the international women’s game of Sir Robert Owen was completed during the year and as I continue as the appointed chair of the Womens’ Six recommendations for change are to be presented for Nations Committee approval. • IRB funding was used to promote participation in the Outlook for 2014/15 and the priorities for the year women’s game ahead: The financial, commercial and business affairs During the year ahead the WRU Group will continue to headlines of the year are as follows: work within the declared aims of our evolving five year • a profit before tax figure of £2.4m was posted for the plan which was first introduced in 2007. It will be a year year of exciting opportunity within which we will remain alert to the wider financial and economic challenges within • the WRU achieved a turnover of £58.5m for the year which we operate. It is crucial that we utilise our The completion of the RSA with the four Regions provided knowledge of the cyclical nature of our business to best Welsh rugby with a ground breaking agreement which will effect. The priorities we have set ourselves within the year protect and nurture the professional game in Wales for at are all measured against the financial realities of our least the next six years. The creation of National Dual business. I remain confident that we will be able to deliver Contracts provides the WRU with a powerful weapon to effectively on our remit to manage and develop the help keep more senior international players in Wales. national sport of Wales.

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Our priorities over the next twelve months are to: strived to help Welsh rugby evolve and develop as we move further into the twenty first century and an era • support the National Squad in its preparations for Rugby within which professional and community rugby face ever World Cup 2015 increasing rates of change. • prepare to successfully deliver eight RWC international Close examination of our achievements during YE14 offer fixtures at the Millennium Stadium clear evidence that we are investing in the game in line • unveil and manage the new Desso pitch at the with the priorities contained in our five year plan. Millennium Stadium in time for the Autumn test matches There is no doubt that the past twelve months have been • utilise the new bespoke broadcast cabling system within overshadowed by public and media comment which has the Stadium often strived to obscure our focus and our successes. We • work with our four Regions to develop professional cannot allow that to dominate or distract us from our rugby in Wales through the stated aims and priorities of focus. the new RSA The year ahead will be exceptionally busy on all levels with • enhance the Principality Premiership Division through the the Rugby World Cup on the horizon for the elite game terms of the existing Participation Agreement combined with new European competitions for our Regions and an enhanced Guinness PRO12. In the • continue to encourage development of representative community game we are embarking on a new strategy rugby in North Wales which will revive the links between our schools and clubs. • develop our Wales Sevens squad through guaranteed The aim there is to improve participation and strengthen selection of more quality players the whole of Welsh rugby by bolstering our grassroots game. • introduce a new National Women’s Manager to develop the women’s game The continued evolution of our Millennium Stadium is testimony to our ambition. The economic impact survey • to put in place Rugby Department protocols and results summarised above clearly show what an asset it is structures which will ultimately help grow participation for Wales. within the Community Game We look forward with confidence and excitement to a • improve liaison with all our 335 members and specifically challenging year ahead which is packed with opportunity our member clubs for Welsh rugby. • embark on formal district visits by the President, I want to thank everyone engaged with this journey from Chairman and Group CEO to improve club feedback our players, supporters, volunteers, Regions, clubs to the • introduce significant governance changes if approved by excellent staff here at the WRU Group. In particular I pay the members tribute to the extraordinary achievements of our Chairman David Pickering. Going forward, by working together in • allocate £750,000 worth of equipment to community unity and harmony, we can continue to develop and grow clubs through the Participation Points Scheme our game. • advance the Natwest Rugbyforce workshops to help Diolch yn fawr iawn clubs improve their financial management • implement the 3G Artificial Pitch Collaboration Programme with other sports and Sport Wales to introduce the state of the art training and playing surfaces across Wales Conclusion

This Annual Report offers significant evidence that through Roger Lewis, a difficult year the Welsh Rugby Union has remained Group Chief Executive Officer focused. We have delivered on our declared priorities and The Welsh Rugby Union Limited

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Strategic report Year ended 30 June 2014

Steve Phillips, Group Finance Director

The Group’s business and objectives Participation in rugby Group activities • Development of the elite player talent within Wales The Welsh Rugby Union Limited’s (“Company”) principal • Participation levels in Community Rugby, including activity is to promote, foster, encourage, control and women and junior numbers improve the game of rugby football throughout Wales. An analysis of the Group’s performance against these The Company wholly owns Millennium Stadium plc measures is shown in the ‘Community Rugby Review’ (“MS”), WRU National Centre of Excellence Ltd section of this report. (“WRUNCE”), and WRU Supporters Club Ltd (“WRUSC”) and, collectively, the Company and these subsidiaries are Financial performance referred to as the Group. • Generation of sufficient earnings before interest, Key performance indicators (“KPIs”) depreciation, allocations and exceptional items (“EBITDA”), over the medium term, to fulfil the The KPIs of the Group are: Group’s objectives and obligations Rugby performance • Number of and attendances at international rugby • Success of the National Squad matches, featuring the National Squad, held at the Millennium Stadium • Performance of the four Welsh Regions • Provision of consistent and affordable levels of funding • Performance of the Group’s Age-Grade teams to clubs and affiliated organisations to allow them to An analysis of the Group’s performance against these implement long term plans to fulfil their objectives measures is shown in the ‘Elite Rugby Review’ section of An analysis of the Group’s performance against these this report. measures is shown below. Dynamics of the business The activities, both operational and financial, of each company in the Group are so intrinsically linked that there is little merit in assessing individual performance. Whilst they are all separate legal entities and are obliged to prepare separate financial statements, it is the Group’s performance that is the only meaningful measure. The Group must deliver on its commercial activities to allow re-investment in elite rugby, community rugby and the stadium. Accordingly, the Group’s income generation is paramount to delivering on its stated objectives. The key economic income driver of the Group’s business is the hosting of events at the Millennium Stadium; particularly, the hosting of international rugby events featuring the Welsh team and especially a winning Welsh team. The more matches that are played, the greater the Group’s revenues and profits that are available for re-investment in Welsh rugby. The Group welcomed 439,000 (2013: 355,000) rugby spectators at the Millennium Stadium for the Dove Men Autumn Series and the RBS , analysed as follows:

Wales in action

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Financial Performance Overview of Performance The Group generates income from its international matches (including sponsorship and broadcast rights) and incremental revenue from the use of the stadium. This income meets the operating costs of the Group to allow the majority of the surplus to be “invested” in “Welsh Rugby”, as follows: 2014 2013 £’m £’m Group income 58.5 61.0 Business and administration (6.1) (6.0) Direct costs (13.0) (13.7) Stadium costs (5.0) (5.3) Surplus 34.4 36.0

As analysed later on page 24, the Group earned some Wales in action £58.5m (2013: £61.0m) predominantly from international rugby matches staged at the Millennium Stadium. These 2014 2014 2013 2013 matches generated 55% (2013: 53%) of the Group’s No. of ‘000 No. of ‘000 overall income. home home matches matches Commercial income at £14.0m contributes 24% (2013: 22%) of the Group’s overall income. Autumn Series 4 226 4 208 Two other income streams, not generated from staging Six Nations 3 213 2 147 international rugby matches, arise from: 7 439 6 355 • Competition income which represents the income from competitions including the Heineken Cup and The average attendance per match was 63,000 (2013: the RaboDirect Pro12; and 59,000) and equated to an average of 85% (2013: 80%) when expressed as a measure of capacity attendance. • Other events which represent events staged at the Millennium Stadium apart from rugby matches The primary reason that the overall attendance increased featuring the National Squad - including, in the two in 2014 was due to playing three Six Nations matches as years indicated above, music concerts, motorsport, compared to the two in 2013. the Heineken Cup Final and the Olympics. The average ticket income per attendee at matches held These two forms of income amount to some 18% (2013: at the Millennium Stadium in YE14 was £41 (2013: £44). 21%) of the Group’s income. Commercial income, including sponsorship income and The remaining income arises from ancillary activities and hospitality income, is also critical to the financial various grant sources, and in 2013 also included income performance of the Group. derived from the British and Irish Lions’ Tour. Within reason, the Group’s operational cost base is The business and administration costs represent the costs relatively fixed; albeit there are incremental costs if more of managing the Group; the direct costs represent the Group controlled events are staged. As a consequence, costs of staging both international rugby matches and incremental events should mean incremental profits which other events held at the stadium; the stadium costs can be reinvested into the game across all levels. represent the costs of managing the stadium other than those directly attributable to events.

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Strategic report Year ended 30 June 2014

The surplus of £34.4m (2013: £36.0m) made by the Group which is invested in “Welsh Rugby” can be analysed as follows: 2014 2013 £’m £’m Operational costs - Elite rugby 4.4 4.2 - Community rugby 2.7 2.7 7.1 6.9

Allocations to affiliates - Regions (Professional) 17.1 16.9 - Clubs (Semi - professional) 1.1 1.2 - Community rugby 4.3 4.0 22.5 22.1

Total investment in “Welsh Rugby” 29.6 29.0

The balance is analysed as follows: Surplus 34.4 36.0 Total investment in “Welsh Rugby” (29.6) (29.0) 4.8 7.0 Wales in action

Deprecation (net of grants) 3.2 3.2 2014 2013 Exceptional items (see Note 4) (1.6) - £’m £’m Interest costs 1.2 1.7 Fair value gains on derivative (0.3) (0.2) Operational costs 2.7 2.7 financial instruments Allocations 4.3 4.0 Tax charge/(credit) 0.5 (3.3) 7.0 6.7 Transferred to reserves 1.8 5.6 4.8 7.0 On a pre-exceptional basis, the Group generated an operating profit of £1.7m (2013: £3.8m) from which net The allocations to the four Regions have continued to debt service of £1.2m (2013: £1.7m) is deducted, the fair increase by 1% (2013: 12%) to £17.1m (including the value gains on derivative instruments were £0.3m (2013: competition income referred to above). These allocations £0.2m) resulting in a profit before exceptional items and cover all international player release and provide financial tax of £0.8m (2013: £2.3m). support for the four Regions and reflect the Participation Revenues Agreement signed in September 2009. Revenues are analysed as follows: The allocation to the Group’s semi-professional league has decreased slightly from the previous year and stands at 2014 2013 £1.1m. The allocations to the Group’s community clubs £’m £’m have increased by 7% to £4.3m; this increase includes £0.5m for facilities grants and £0.8m for the participation Match income 32.4 32.1 points initiative, both of which will be paid out after the Competition income 8.9 9.2 year end. This increase follows on from the increase of 5% Commercial income 14.0 13.1 in YE13. The total investment in the community game is: Other event income 1.5 3.5 Other income 1.7 3.1 58.5 61.0

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delivery costs, as a result of the reduced programme of non WRU events. Business and administration costs have increased by 2% to £6.1m in line with inflationary increases. Direct costs are costs incurred directly in relation to attaining revenues and will include all National Squad costs and third party costs incurred in delivering events at the Millennium Stadium. These costs have decreased by £0.7m mainly as a result of: • a decrease in costs of staging non WRU events, due to the reduced events programme; • a decrease in player costs; and • the above has been offset by an increase in match costs, resulting from the additional home Six Nations match in YE14. The costs in respect of elite rugby have increased by 3% to £4.4m and include managing the age-grade structures, the national 7s side, player development, referee costs, NatWest Rugby Force meeting National Centre of Excellence and insurance which collectively amount to some 66% (2013: 63%) of the total Match income increased by £0.3m predominantly due to with the balance of the 34% (2013: 37%) comprising staff one more home match in this year’s RBS 6 Nations, offset costs, including the staff costs of the academy structures. by lower average ticket prices for the Six Nations and The costs in respect of community rugby have remained at Autumn Series matches and a reduction in broadcast £2.7m. This follows on from the 29% increase in YE13. income. Match income can be further analysed as follows: Community rugby costs include coach development, 2014 2013 referee costs and insurance which amount to some 42% £’m £’m (2013: 42%) of the total with the balance of the 58% (2013: 58%) comprising staff costs. Autumn Series 11.0 11.8 Stadium costs have decreased by some £0.3m to £5.0m Six Nations 20.9 19.8 mainly due to the successful appeal against the stadium’s Other broadcast income 0.5 0.5 business rateable value, which has reduced the business 32.4 32.1 rates charge. EBITDA and net result Commercial income increased by 7% to £14.0m due to increases in the sponsorship programme and hospitality One of the key measures of the Group is the earnings income. before interest, tax, depreciation, exceptional items and allocation to affiliates (“EBITDA”). This is a key measure as Other event income decreased to £1.5m; due to the it is the best proxy for cash generated from the Group’s reduced programme of events compared to YE13. In YE13, operational activities. This provides the cash to fund the 11 football matches were staged for the 2012 Olympics. Group’s strategic objectives. Operational costs The Group’s EBITDA was £27.3m (2013: £29.0m). The As shown in Note 2(b), the Group’s operational costs have Group’s pre-exceptional profit before tax was £0.8m decreased by some 2% to £31.2m. This overall decrease (2013: £2.3m); after exceptional items, a profit before tax is largely due to a decrease in Millennium Stadium event of £2.4m (2013: £2.3m). This can be analysed as follows:

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Strategic report Year ended 30 June 2014

2014 2013 £’m £’m Company 25.7 27.3 WRUNCE 0.2 0.2 WRUSC 0.1 (0.1) MS 1.3 1.7 Group EBITDA 27.3 29.1

Allocations to affiliated organisations (22.5) (22.1) Exceptional items 1.6 - Depreciation (net of grant release) (3.1) (3.2)

Operating profit 3.3 3.8

Net interest (1.2) (1.7) Fair value gains on derivative 0.3 0.2 financial instruments

Profit before tax 2.4 2.3 WRU Sports Medicine Conference

Tax (0.6) 3.3 financial instruments to current market values; these amounts are unrealised. Profit after tax 1.8 5.6 Exceptional items Net interest expense During the year, the Group incurred charges that due to The Group’s net interest expense is analysed as follows: their size and nature were considered “exceptional”. The Group’s definition of exceptional items includes the 2014 2013 identification of significant non-recurring items that enable £’m £’m the “normal” financial performance of the Group to be better understood. As shown in Note 4, exceptional items Bank interest payable & similar 0.8 1.0 comprised legal and professional costs and accelerated Bank charges 0.3 0.2 depreciation on the old pitch system offset by a business Fair value gains on derivative (0.3) (0.2) rates rebate in respect of the Millennium Stadium. financial instruments Interest due to HMRC arising from 0.1 0.5 2014 2013 settlement of capital allowances £’m £’m Total 0.9 1.5 Legal and professional costs (0.2) - The Group has derivative instruments that hedge the Accelerated depreciation on pitch system (0.2) - majority of the Group’s debt, as shown in note 14. These Business rates rebate 2.0 - instruments ensure that the rate of interest paid by the Total 1.6 - Group will be in a defined range. Given that the prevailing rates during YE14 were below the floor of the Taxation derivative instruments, the £0.8m shown under bank During YE14, the Group paid to HM Revenue & Customs interest payable & similar above includes some £0.2m ("HMRC") the second of three payments in respect of the (YE13: £0.2m) of interest cost arising from these derivative historic tax liability that was agreed in YE13. This payment instruments. is included in the tax paid amounts on the Group’s The fair value gains on derivative financial instruments cashflow. The third and final payment will be made in above are a function of comparing the existing derivative March 2015.

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Cashflow and Net Debt As part of the banking agreements the Group has to comply with bank covenants which require the Group to, The Group’s net cash inflows from operating activities inter alia, meet certain levels of cashflows and surpluses. were as follows: This enforces normal business practices on the Group, but 2014 2013 limits the extent to which the Group can invest, make £’m £’m allocations to affiliated organisations and access the facilities above. EBITDA 27.3 29.1 These bank covenants are typical of those applying to Allocations to affiliated organisations (22.5) (22.1) commercial businesses. It is in the Group’s best interests Exceptional items 1.8 - to comply with these covenants as a breach would be a Working capital movements 1.3 (3.3) default of the loan agreements. The Group’s financial Net cash inflows from 7.9 3.7 management and controls are structured so that the Group operating activities comply with these covenants. From this amount in YE14, the Group paid net interest Capital expenditure costs of £1.2m, paid £0.3m in respect of fixed assets, During YE14, the Group invested in some £0.3m of capital repaid a grant to the Compass Group of £0.1m and paid expenditure; the main categories of investment were as tax of £1.7m leaving a net cash increase of £4.6m. follows: Net debt, which is defined as bank loans, debenture loans £’m less cash balances, as at 30 June 2014 was £62.5m (2013: £67.1m). National Centre of Excellence 0.2 Net bank debt, which is bank loans less cash balances, was Other capital expenditure 0.1 £24.9m (2013: £29.5m). Included within these amounts is 0.3 some £10.0m which is repayable only in the event of certain defined events occurring. The amounts shown for the National Centre of Excellence above include gym and medical equipment. The net bank debt position, excluding the £10.0m above, of the Group is as follows: Balance sheet and reserves 30 June 2014 30 June 2013 The increase in the Group's net assets from £11.3m to £’m £’m £13.1m arises from the retained profit for the year. Loans: The fixed assets of the Group reduced by some £4.8m, Term loan 10.0 12.8 reflecting the capital expenditure of £0.3m offset by the Revolving credit facility (“RCF”) 5.0 7.5 depreciation and exceptional depreciation charged in the 15.0 20.3 year of £5.1m. Cash (0.1) (0.8) Net bank debt 14.9 19.5 Operating working capital fluctuates from year to year depending upon the timing of events arising immediately prior to the year end. The decrease in net bank debt during the year of £4.6m includes a £2.8m reduction in the term loan in line with the terms of that loan and a £2.5m decrease in the RCF. The RCF was £5.0m drawn as at 30 June 2014, £7.5m drawn as at 30 June 2013 and had a maximum draw of £10.3m during the year. The RCF was fully repaid on a number of occasions during the year highlighting the seasonality of the Group’s business. As set out in Note 13, as at 30 June 2014, the Group had unutilised facilities of £12.5m (2013: £10.0m). Matthew Rees returns to rugby

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Strategic report Year ended 30 June 2014

Principal risks and mitigation strategies As outlined earlier in this report, the key objectives of the Group are re-investment in elite rugby, community rugby and the stadium. The Directors’ assessment of the principal risks to delivering these objectives, their potential affect and the steps taken by the Group to mitigate these risks are set out below: Income generation – the ability to generate income dictates the level of re-investment the Group is able to make in all forms of rugby. A sustained fall in income would lead to a reduction in financial resource available for re-investment in rugby. Some 79% (2013: 74%) of the Group’s income is predominantly derived from staging international matches featuring the National Squad and the commercial activities associated with the National Squad. Given its significance, Wales in action the mitigation of income risk is therefore focused on match and commercial incomes. financial covenants forms a key part of all policy and strategy and the Group has a rigorous annual budgeting The Group seeks to mitigate risk to income by, where process that is focused on covenant compliance. The possible, entering into long term arrangements with its Group reviews performance against this budget broadcasters, sponsors and other commercial partners. throughout the year in order to identify any potential risks The Group’s ticket pricing strategy is focused on to compliance. The Group is continually in communication maintaining a balance between the highest possible with its bankers in respect of the Group’s activities and attendances and strong financial returns. The Group’s performance. ticket prices are reviewed annually with reference to market conditions and the opposition faced. The maintenance, physical security and insurance of its main assets, primarily the Millennium Stadium – As noted above, 79% (2013: 74%) of the Group’s income the majority of the Group’s income is derived from the is derived from activities associated with the National staging of international matches at the Millennium Squad. The performance of the National Squad will have Stadium and should the Millennium Stadium not be an impact on the Group’s ability to generate income, available to host matches the Group would have to seek particularly over the medium to long term. The Group aims alternative venues, which would likely incur significant to ensure the success of the National Squad by recruiting costs and may not have similar capacity. Loss of or a world class coaching and medical team to provide the restricted access to the Group’s other assets, such as the best possible support to National Squad players, securing National Centre of Excellence (“NCE”), would also have a additional preparation time for the National Squad players severely detrimental impact on the Group. The training and extensive investment in training facilities, to ensure the facilities at the NCE are amongst the best in the world and National Squad have the best possible environment in National Squad performance may suffer as a result of loss which to train. of access to these facilities. The Group takes extensive The provision of adequate banking facilities - the measures to safeguard its assets. The Group employs a Group is financed by a mixture of bank and debenture team of maintenance and facility management staff who debt. The continued availability of the bank debt facilities, undertake a thorough preventative maintenance at competitive rates, is crucial to the future prospects of programme at all of the Group’s facilities. The Group the Group. The Group’s banking facilities are subject to procures comprehensive insurance policies that, in the compliance with financial covenants and non-compliance event of damage to assets, provide recompense for of these covenants could significantly impact on the rectification of damage and for loss of earnings due to Group’s banking facilities. Ensuring adherence to the business interruption.

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Elite rugby review

Warren Gatland

A year which will possibly be remembered more for the The overriding positive to emerge through the negotiations off-the-field challenges concerning the WRU’s evolving for the RSA is a contract between the WRU and the relationship with the four Regions. Regions which will guarantee a supportive funding formula in return for agreed rugby protocols. Those protocols will The new Rugby Services Agreement (“RSA”) was being help the game at the top level evolve and develop while negotiated through a dialogue which ranged over ground focusing on the identification, nurturing and retention of breaking rugby protocols combined with improved funding the very best international quality players here in Wales. from the WRU. The discussions delivered a RSA which will serve to bolster the professional game in Wales at least The RSA is a roadmap along which all the parties involved until 2020. It was inevitable that the negotiations would will in future have a clear direction in which to travel with be detailed and protracted. the shared aim of strengthening the professional game in Wales. The RSA will see the Professional Regional Game Within this difficult environment a major boost for Welsh Board retained and guarantees a structure which will rugby was achieved with the signing of Wales Head Coach stabilise the elite game below international level through Warren Gatland until 2019. a timespan which includes the next two Rugby World During the year the Wales Captain Sam Warburton was Cups. contracted to the WRU in a ground breaking arrangement There is no doubt that throughout the year the intensity which was a precursor to the unveiling of National Dual of the public debate on a variety of media platforms Contracts in the RSA. This was seen as a move by the WRU became increasingly damaging to the WRU’s reputation. to identify key players who should be encouraged to The WRU took the decision to avoid participating in this remain in Wales where their careers will be managed as public dialogue to remain focused on the essential privacy part of the RSA.

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Wales in action

of corporate negotiations. The WRU did however make it Heineken Cup or achieving league success in the clear that it would set out to achieve the best possible RaboDirect Pro12. financial settlement within the RSA in return for agreed There were encouraging appointments within Welsh rugby rugby deliverables which would benefit the professional as individuals such as Byron Hayward, Paul John, Jarred game in Wales. Griffiths and Ryan Harries all moved from being WRU At the end of 2013 the Regions announced they would employees to important posts with various Regions. These not be extending the 2009 Participation Agreement to its career developments were seen as examples of the WRU full term, which meant the contractual arrangement commitment to develop off-the-field talent as well as between the WRU and the four Regions would cease at players. the conclusion of YE14. Following his appointment the new Head of Rugby, Josh This unsettled period in late 2013 served as a prelude to Lewsey, conducted a far reaching review which will serve wider rugby discussions which resulted in significant to bolster the elite and community games. changes to the organisation of competitions involving the The result of his work was the announcement of a new four Regional teams. A new European club competition structure which is described more fully in the community was introduced called the Rugby Champions Cup. An section of this report, but will have a significant impact in important and associated change was a reconfiguration of the long term on the elite game in Wales. The aim of his qualification which will now be based primarily on strategy is to increase participation and the capacity to performances in the three premier European league identify talent across the player development structure competitions. This means strong end of season positions from grassroots upwards. in the Pro12 competition are now crucial for the four Regions. During the year it was announced that Guinness As in recent years there was a focus on infrastructure at will be the named sponsors of the Pro12 for the 2014/15 the top level and it is noted that the introduction of a new season. artificial pitch by Cardiff Blues provided a major boost to the playing surface at . At international level throughout the year Wales remained competitive, but the high expectations of recent years were An announcement was also made to offer a fixture not rewarded with tournament titles. between a WRU President’s Premiership XV against Georgia. This offer was announced in Georgia by the There was disappointment at a Regional level with no Presiding Officer of the National Assembly, Dame Welsh team reaching the quarter finals of the last Rosemary Butler, during an official visit in June 2014.

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Elite rugby review

Ospreys v

The WRU continued to focus on sevens rugby throughout The caps were awarded at a ceremony in the Millennium the year with the team taking a complete part in the IRB Stadium and an honours board was unveiled bearing the international circuit. The WRU also announced during the names of all the recipients. year that it would bid to host the 2018 World Cup Sevens It is significant that the financial year entered 2014 within at the Millennium Stadium. A new coach was appointed which the start of World War 1 was being commemorated. for the Wales sevens team. Gareth Williams was an The WRU entered a partnership with Barn Media and ITV exceptional candidate selected internally so he is another Cymru Wales to produce a documentary focusing on the prime example of the WRU’s continued success with lives of the 13 Welsh international rugby players who died internal staff development. during the war. The inaugural Fosters Sevens competition involving the Significant milestones during the year included the 100 Premiership teams was a significant new initiative for the caps achieved by the Cardiff Blues prop forward Gethin WRU during the year. Jenkins. The Group Chief Executive of the WRU, Roger Lewis, There was also an accolade for Wales Head Coach Warren remained as chair of the Womens’ Six Nations Committee Gatland who was awarded an OBE in the Queen’s 2014 and the WRU played an active role in ensuring the Birthday Honours List for his services to rugby. northern hemisphere competition remains at the heart of the Womens’ game. Towards the end of the year the Cardiff Blues and Wales centre Owen Williams suffered a significant injury during In a radical move the WRU agreed to present President’s a game and the rugby world has united in wishing him Caps for the first time to players who had represented well in his recovery. Wales in uncapped encounters with IRB rugby nations.

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RBS 6 NATIONS CHAMPIONSHIP 2014 Pos Team Played Won Drawn Lost For Against Points

1 Ireland 5 4 0 1 132 49 8

2 England 5 4 0 1 138 65 8

3 Wales 5 3 0 2 122 79 6

4 5 3 0 2 101 100 6

5 Scotland 5 1 0 4 47 138 2

6 Italy 5 0 0 5 63 172 0

Professional – International against Scotland ended with six tries to the hosts with and both collecting a brace The Dove Men Series 2013 kicked off the season for Wales alongside tries from Liam Williams and as with Warren Gatland’s side claiming two victories in their Wales ended the campaign with a dominant 51-3 victory. Autumn campaign. South Africa were the first visitors to the Millennium Stadium in November and took the Ahead of the summer tour to South Africa the first Wales opening match 24-15. Wales bounced back to beat Senior Trial in 14 years was held at a packed Liberty Argentina 40-6 and 17-7 on successive weekends Stadium in with more than 20,000 spectators before a final game defeat to Australia 30-26. The victory against Argentina marked Gethin Jenkins 100th Wales Cap and the Cardiff Blues prop went on to become Wales’ most capped player of all time in Wales’ final game of the 2014 RBS 6 Nations against Scotland a game in which he made his 105th appearance. Jenkins concluded the 2013/14 season on 107 caps. Four players made their international debuts during the Autumn series. and made their first appearances in the victory against Argentina with 19- year-old and scrum-half Rhodri Williams earning their first caps against Tonga. Wales’ defence of their RBS 6 Nations title began with a home victory against Italy with tries from and Scott Williams helping them to a 23-15 success. A disappointing 26-3 defeat then followed against Ireland at the . The match was a first international test for ’ second row . Friday night Six Nations action returned to the Millennium Stadium for Wales’ third match of the tournament as they hosted France. scored 17 points with the boot to accompany tries from Sam Warburton and George North as Wales returned to winning ways with a 27-6 victory. Wales’ trip to Twickenham ended in defeat with Halfpenny scoring all of his side’s 18 points in a 29-18 loss. The Six Nations finale Gethin Jenkins runs out for his 100th cap

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Elite rugby review

Probables v Possibles

watching the Probables take on the Possibles. The Wales 40 – 6 Argentina Probables ran out 55-7 victors on the night with the squad Wales 17 – 7 Tonga to tour South Africa announced post-game. Wales 26 – 30 Australia The tour began with a 34-12 victory over the Eastern Province Kings in Port Elizabeth with leading RBS 6 Nations 2014 the side to success. The former World Champions claimed Wales 23 – 15 Italy victory in the first test in Durban 38-16, a match that saw debuts for Gareth Davies and Matthew Morgan. Wales, Ireland 26 – 3 Wales led by tour captain Alun , continued their hunt Wales 27 – 6 France for a first victory on South African soil seven days later in Nelspruit. Tries from Alex Cuthbert, Jamie Roberts and Ken England 29 – 18 Wales Owens set the visitors up as they dominated the encounter Wales 51 – 3 Scotland but defeat was snatched away in the final minutes as the Springboks claimed a 31-30 victory. South Africa tour 2014 Results: Eastern Province Kings 12 – 34 Wales XV Dove Men Series 2013 South Africa 38 – 16 Wales Wales 15 – 24 South Africa South Africa 31 – 30 Wales

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Elite rugby review

Judgement Day

The Regions eventual Cup semi-finalists Clermont Auvergne who qualified from Pool 4. Heineken Cup and Amlin Challenge Cup The struggled in a tough pool which featured The Ospreys, Cardiff Blues and Scarlets represented Wales Leinster, Castres and eventual Amlin Challenge Cup in the Heineken Cup. winners Northampton and despite beating the French The Blues secured a second place finish in Pool 2 and outfit at the they finished bottom of pulled of an impressive 19-15 victory over eventual Cup Pool 1. winners Toulon at home in the Cardiff capital along the Newport Gwent Dragons flew the flag for Wales in the way, but their 14 point total wasn’t quite good enough to Amlin Challenge Cup, but were up against finalists Bath propel them into the knock-out stages of the competition. in Pool 2. They eventually finished third in the pool with The Scarlets had got their campaign off to a winning start the highlight of their campaign coming against Bordeaux- with victory over Harlequins and also had success on the Begles who they beat 40-24 at . road against Racing Metro 92, but it would be Quins and

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RaboDirect PRO12 Pos Team Played Won Drawn Lost For Against Bonus Pts Points 1 Leinster 22 17 1 4 554 352 12 82 2 Glasgow 22 18 0 4 484 309 7 79 3 Munster 22 16 0 6 538 339 10 74 4 Ulster 22 15 0 7 470 319 10 70 5 Ospreys 22 13 1 8 571 388 12 66 6 Scarlets 22 11 1 10 435 438 9 55 7 Cardiff Blues 22 8 1 13 425 538 7 41 8 Edinburgh 22 7 0 15 397 526 10 38 9 Newport Gwent Dragons 22 7 1 14 392 492 5 35 10 Connacht 22 6 0 16 371 509 11 35 11 Treviso 22 5 1 16 376 591 8 30 12 22 5 2 15 347 559 5 29

RaboDirect PRO12 The Ospreys (5th) were Wales’ highest placed side in the RaboDirect PRO12, but they were closely followed by both the Scarlets (6th) and Cardiff Blues (7th). Newport Gwent Dragons finished ninth, meaning both the Blues and the Dragons showed progress by improving on their respective placings the year before. The Ospreys narrowly missed out on a play-off spot, securing the same 66 points which put the Scarlets in the play-offs a year earlier, by virtue of a final day victory over Connacht. But it was the men from Ulster who beat fellow Irishmen Munster in their final league outing to pip Wales’ leading lights into fourth spot. LV= Cup The Ospreys finished second in Pool 3 of the Anglo-Welsh competition, but it was Bath who remained unbeaten to reach the semi-finals. The Blues finished third in Pool 2 behind eventual winners Exeter and Sale despite claiming 10 points over their four matches and notching up two wins. The Scarlets also got two wins under their belts in Pool 4 but they weren’t strong enough to surpass Northampton, who also remained unbeaten. Newport Gwent Dragons claimed a famous victory over Wasps, but it remained the only one of their campaign and they finished at the bottom of Pool 1.

Cardiff Blues v Harlequins

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Elite rugby review

Wales U20 action

Wales U20 campaign determined to draw on the experience of the senior players who had reached the final a year earlier. It was a mixed bag of fortunes for Wales U20 during the season, both during the U20 Six Nations, where they They began positively with a 48-19 win over Fiji, but a poor finished third and at the Junior World Championship in performance and result against Ireland four days later New Zealand. virtually prevented the side from progressing to the last four this time around. However, they bounced back Byron Hayward’s young side produced impressive strongly and produced a 13-3 victory over performances at their Colwyn Bay home base against Italy champions France in their last pool game. They faced and Scotland, and away from home against Ireland where France again in the fifth place semi-final and despite they showed gutsy determination to win 16-0 in terrible another strong display, lost by a point 18-19. A convincing conditions. They lost 16-10 to eventual Grand Slam 20-3 victory over Samoa ensured they finished the winners France and suffered a heavy defeat to England at tournament with a win and, despite finishing in seventh Kingston Park. place, there were positives in terms of player development The side, led by centre Steffan Hughes, headed to New and exposing players to the highest standard of world Zealand to begin their Junior World Championship rugby at this level.

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Wales U18 action

Results a late surge from the Scots. They lost to England 9-11 in the semi-finals but beat France for a third time in the U20 Six Nations season by 31-30 to finish in third place. Wales U20 26 - 9 Italy U20 Results Ireland U20 0 – 16 Wales U20 U18 International tournament South Africa Wales U20 10 – 16 France U20 Wales U18 47 - 8 France U18 England U20 67 – 7 Wales U20 Wales U18 15 - 17 England U18 Wales U20 43 – 15 Scotland U20 Wales U18 13 - 14 South Africa U18 U20 Junior World Championship November international Wales U20 48 – 19 Fiji U20 Wales U18 26 - 12 Australia Schools Wales U20 21 – 35 Ireland U20 March internationals Wales U20 13 - 3 France U20 France U18 18 - 17 Wales U18 Semi Final Wales U18 12 - 43 England U18 Wales U20 18 - 19 France U20 FIRA/AER U18 tournament 7/8th place play-off Wales U18 23 - 21 Scotland U18 Wales U20 20 – 3 Samoa U20 Wales U18 9 - 11 England U18 Wales U18 Wales U18 31 - 30 France U18 Wales U18 enjoyed a successful season, with improved Welsh Schools U16 performances at the international Under 18 tournament in South Africa, beating France 47-8 and with narrow 15- Welsh Schools U16 fell just short of beating England in 17 and 13-14 defeats to England and South Africa. They their only capped match of the season with a 22-24 defeat also beat Australia Schools 26-12 at in November at the Gnoll. Head coach Simon Jones fielded two teams and went on to beat France again in March, losing to at the Wellington International Festival prior to the Test, England in their other pre-FIRA-AER international. each team playing three development games over eight days against regional and international sides. At the FIRA-AER U18 tournament in Poland at Easter, Wales beat Scotland 23-21 in their opening game despite

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Elite rugby review

Wales Sevens action

Sevens Wales then completed the campaign with a Shield final victory over 29-12 in the Emirates Airline Glasgow The 2013/14 HSBC Sevens Series proved a disappointment 7s before finishing the series at Twickenham, losing to for Wales. After a promising start to the campaign, Wales 14-17 in the Bowl semi-final. finished in 11th place on the final points table. Wales’s management had to deal with injuries to key Wales entered the series in confident mood, having players Lee Williams, Adam Thomas, and Alex finished the previous two seasons in seventh place but Webber in a demanding season. Paul John left his post as their campaign was disrupted constantly with injuries to head coach in December to join the Cardiff Blues coaching key players. team. As a result assistant coach Gareth Williams stepped The season began well in October in the Gold Coast up as interim head coach before being given the post full Sevens where Paul John’s side reached the Plate semi-final time with a couple of rounds remaining of the season. before bowing out 12-7 to Kenya. Two months later Wales James Davies finished the season with 22 tries as the reached the Plate final in Dubai but succumbed 21-5 to leading try scorer for Wales with Luke Morgan close Argentina. Wales then had to wait another five rounds of behind on 21. Long-standing players James Davies and the World Series before reaching another final. captain Adam Thomas left the Sevens at the end of the In Hong Kong Wales, led by who finished the campaign to begin regional careers with the Scarlets and tournament as the second highest placed try-scorer with Cardiff Blues respectively. five tries, took a 14-7 lead at the break against South Africa. Midway through the second half, South Africa hit back to snatch a 19-14 victory.

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Wales Sevens action

IRB Sevens World Series New Zealand Australia Wales 0 - 26 South Africa Wales 33 - 14 Portugal Wales 7 - 21 England Wales 14 - 19 Canada Wales 45 - 19 Portugal Wales 22 - 19 Fiji Wales 19 – 12 Tonga Wales 21 - 28 South Africa Wales 0 - 28 Scotland Wales 7 - 12 Kenya Hong Kong Dubai Wales 7 - 42 Fiji Wales 38 - 0 Wales 10 - 7 Kenya Wales 31 - 19 Scotland Wales 47 - 12 Sri Lanka Wales 19 - 14 Australia Wales 5 - 28 New Zealand Wales 12 - 33 England Wales 31 - 14 Canada Wales 19 - 24 Kenya Wales 14 - 19 South Africa Wales 5 - 21 Argentina Scotland South Africa Wales 24 - 19 Kenya Wales 26 - 10 USA Wales 17 - 28 Argentina Wales 17 - 28 Portugal Wales 0 - 45 Fiji Wales 7 - 48 New Zealand Wales 7 - 21 France Wales 24 - 19 Canada Wales 38 - 7 Portugal Wales 21 - 33 Australia Wales 29 - 12 Japan USA England Wales 0 - 41 South Africa Wales 10 - 14 England Wales 17 - 21 Kenya Wales 0 - 49 New Zealand Wales 19 - 21 Canada Wales 7 - 33 Argentina Wales 12 - 7 USA Wales 24 - 19 Scotland Wales 12 – 40 Fiji Wales 14 - 17 Canada

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Elite rugby review

2014 - Women’s Six Nations Pos Team Played Won Drawn Lost PF PA Diff TF TA Points

1 France Women 5 5 0 0 162 21 141 25 2 10

2 England Women 5 4 0 1 145 31 114 23 3 8

3 Ireland Women 5 3 0 2 137 42 95 20 6 6

4 Italy Women 5 2 0 3 57 108 -51 8 16 4

5 Wales Women 5 1 0 4 45 88 -43 5 12 2

6 Scotland Women 5 0 0 5 5 261 -256 1 43 0

Womens On the regional front, Cardiff Blues claimed the honours at Llandarcy when any one of three teams entered the final Wales Women found the 2014 Six Nations tough going, day of action with a chance of victory, but under with only Scotland below them in the points table when demanding conditions it was the Blues who ruled supreme. the competition was wrapped up. But it could so easily have been so different. In the opening game of the campaign Wales somehow contrived to lose against Italy 11-12 at the Talbot Athletic Ground. Wales completely dominated the first half where Italy managed to exit their own half only twice. But despite total domination Wales only led 8-0 at halftime. In the second half Italy hit back to stage a late win. Wales then travelled to Ashbourne and lost to Ireland 14-6 in an evenly contested affair. Two first half penalties by teenager gave Wales a 6-3 lead at the break but the hosts fought back to claim the win. Wales were then given a lesson by the French who stormed to a 27-0 victory at Aberavon. Centre Shannon Izar and winger Marion Lievre both raced over in the dying stages to put a flattering gloss on the final score-line for the victors but ultimately Wales were guilty of coughing up too much possession in the second half and poor tackling didn't aid their cause either. Wales then suffered a heavy 35-3 defeat against England at the Stoop before recording their only victory of the campaign against Scotland with a 25-0 win. Wales head coach took the opportunity to blood a number of youngsters with teenagers Elli Norkett and Robyn Wilkins both stepping up to international level. Second row Jenny Hawkins and scrum half Laurie Harries also featured for the first time for Wales. Cardiff Blues Women in action

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Elite rugby review

SWALEC Cup winners Pontypridd

Semi-Professional Game Dorian Jones added a penalty but Ponty’s forward power proved too good. Pontypridd won their third consecutive Principality Premiership title – and completed an historic ‘double, In the Principality Premiership, Paul John’s side ended the double’ by also retaining the SWALEC Cup, although they normal league season in the top spot, with were bitterly disappointed to lose to Leinster on try count Quins in second place, earning themselves a home draw after extra time in the British & Irish Cup semi-final. in the semi-final play-off against Cross Keys. Keys, however, were more powerful following their The SWALEC Cup provided the first opportunity for disappointment in the SWALEC Cup final and two tries silverware at semi-professional level and Pontypridd and from captain Leon Andrews enabled the Dragons side to Cross Keys had swept all before them to reach the win 31-20 and join Pontypridd in the Principality Millennium Stadium SWALEC Finals Day. Ponty arrived on Premiership Play-Off Final at Sardis Road. the back of a 34-10 win over Newport, a huge 55-15 quarter-final win over cup kings Llanelli, and a 32-3 victory Once again, Pontypridd showed why they have dominated over Aberavon while the Keys had beaten Neath, Bedwas the semi-professional game in recent years and completed and Cardiff away from home before narrowly beating an emotional season – which involved the departure to the Llandovery 29-27 in the semis. Blues coaching team of Dale McIntosh and the sudden death of stalwart prop Stuart Wililams – with a 38-17 win, The Cup final was won convincingly by Pontypridd in the Rhys Shellard, Lewis Williams, Dan Godfrey and Jordan end, with tries from prop James Howe and centre Gavin Sienawski scoring tries and the ever reliable Simon Davey, Simon Humberstone adding 11 points from the Humberstone adding 18 points. boot. Cross Keys’ Nathan Trowbridge touched down and

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Elite rugby review

Principality Premiership winners Pontypridd

SWALEC CUP Principality Premiership play-off final Quarter-finals Pontypridd 38 - 17 Cross Keys Aberavon 26 - 22 Carmarthen British & Irish Cup 2012/14 Competition Cardiff 10 - 25 Cross Keys Quarter Final Ebbw Vale 13 - 16 Llandovery 14 - 16 Pontypridd Pontypridd 55 - 15 Llanelli Leinster 47 - 15 Munster Semi-finals 39 - 24 Aberavon 3 - 32 Pontypridd Leeds Carnegie 41 - 21 Plymouth Albion Cross Keys 29 - 27 Llandovery Semi-Final Final Bristol 25 - 30 Leeds Carnegie Pontypridd 21 - 8 Cross Keys Pontypridd 22 - 22 Leinster Principality Premiership play-offs Final Principality Premiership play-off Leinster 44 - 17 Leeds Carnegie Carmarthen 20 - 31 Cross Keys

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Elite rugby review

Regional Age Grade U16 Pos Team Played Won Drawn Lost PF PA Diff TF TA TB LB Points 1 Ospreys West 5 5 00118 27 91 20 53 023 2 Scarlets 6 402145 90 55 23 14 3019 3 Blues North 6402125 101 24 21 17 2018 4 Blues South 6402114 96 18 20 16 2018 5 Dragons 6204105 135 -30 17 23 2212 6 RGC 1404 5104 94 152 -58 16 26 307 7 Ospreys East 6006 60 160 -100 10 26 112

Regional Age Grade U18 Pos Team Played Won Drawn Lost PF PA Diff TF TA TB LB Points 1 Blues 5 4 01132 61 71 19 82 018 2 Dragons 5 203 94 125 -31 11 19 1110 3 Scarlets 4 20 2 62 57 586019 4 RGC 1404 4 202 55 86 -31 8 11 109 5 Ospreys 4 103 43 57 -14 57026

Regional Age Grade WRU Wednesday U18 League The Blues claimed the Regional U18 title with a 55-15 win Coleg Sir Gar successfully defended the title, beating Coleg over the Dragons to end one of the most competitive y Cymoedd 25-22, in a rematch of last year’s final of the seasons in the competition’s history. tournament, which is growing in stature and profile year on year. Coleg y Cymoedd (previously Coleg Morgannwg) Just seven points separated all five teams in the group were the pre-match favourites, having lost only one game stage, with the identity of the two finalist sides only all season but Coleg Sir Gar dug deep to come back from decided after the final round of pool fixtures. trailing 19-3 just before half time. Ironically, the last group stage match was a precursor to the final with the Dragons downing the previously unbeaten Blues 28-12 at Pandy Park, which saw them edge out the Scarlets and RGC 1404 and secure a place in the final. However, Blues outside half guided the Blues to the title in a final which was moved and delayed due to the inclement conditions, scoring four tries himself and converting five of his side’s nine tries in all. There was no final at Regional U16 level, with seven teams playing each other on a home or away basis. Blues North U16s in action

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Elite rugby review

Charity bucket collections

Charities Sports Wales During the year the WRU achieved a milestone and Sport Wales Chief Executive Sarah Powell has reflected on announced that charity bucket collections at Wales’ rugby the past year. She said: internationals had raised £529,000 across some 102 “With more children, young people and adults taking part games since the Millennium Stadium opened. in sport regularly than ever before, there’s never been a Apart from Welsh based charities which have benefitted better time to be involved in Welsh sport. there have also been specific appeals such as the From Holyhead and Haverfordwest to Chirk and Philippines' crisis when £9,000 was raised at one match in Chepstow, we want to get every child hooked on sport for 2013 when Wales played Argentina. life. The WRU is an important partner in this bold and During the year the senior Wales squad carried out ambitious vision. They share our goal of creating a radical promotional activity in aid of a range of charities including step change towards a healthier, more active Wales. an anti-domestic violence police campaign and an anti- Rugby’s work to create a thriving club network and a racism project under the banner “Kick It Out.” workforce that is passionate, skilled, diverse and motivated The WRU also supported St John Wales and the Welsh is essential. Using their skills to build a child’s ability, Hearts charity which helped deliver defibrillators to clubs confidence and improve their health and well-being across Wales. through rugby. Working with us at eradicating sporting inequalities, to ensure that everyone has an opportunity to The Welsh Rugby Charitable Trust (“WRCT”) which helps play and enjoy the benefits of sport, helping them to reach severely injured players remains the core charity of the their own personal podium. Through offering a wide range WRU. of experiences and versions of the game we can capture The President of the WRU, Dennis Gethin, chairs the WRCT and nurture the talent of the future. Using the great history and the Duke of Cambridge is the Royal Patron. Rugby has in Wales and the current role models to inspire The WRU continues its membership of the Princes’ the next generation. Charities Forum which involves liaising closely with a Diversity at all levels of the game is essential and we are number of UK charities to work in partnership on events encouraged to see the WRU making its first steps towards and projects. increased diversity on its board and we look forward to seeing this develop further. The growing strength of our relationship with the WRU is a positive for and I look forward to further collaboration in the year ahead.”

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Community rugby review

Rugby Stars disability course

The introduction of a radical new plan to revive the historic delivering more talent into the system and, thereby, links between schools and club rugby across Wales was a underpinning the long term needs of both elite and landmark decision of the Board during the year. The idea community rugby. now being put in place is to use the strength of the WRU All schools in Wales were approached and given the to focus on encouraging thousands of school children in positive response, the WRU decided to help fund ROs at Wales to become better players. more than forty schools initially. The idea for the refocus Under the plan, Rugby Officers (“ROs”) partly funded by on schools rugby was championed by the new Head of the WRU are employed at schools to focus on reviving the Rugby, Josh Lewsey, after he started his tenure with a 100 game through the system now called WRU School-Club day review of the game in Wales. Hubs. Their brief is to foster interest in rugby amongst boys He said it became clear that the revival of the schools game and girls while forging close links with nearby clubs to was fundamental to the continued success of rugby as the encourage life-long habitual rugby participation as early as national sport of Wales. His argument was that schools possible. present a captive audience of potential players who can To facilitate this activity a revamp of the schools league then be encouraged to develop their rugby skills and be structures was undertaken with a renewed emphasis on encouraged to transfer to the club game to further their Wednesday rugby to “clear the decks” for clubs activity at involvement. His strategy recognised fundamental weekends. New leagues are planned to accompany the economic and social challenges while offering an optimistic highly successful U18 Wednesday League to ensure more viewpoint based on the potential within the schools teenagers are able to play the game competitively at system. schools level and are actively transferred to club rugby. The underlying concept is to refocus on schools where the This strategy is aimed at enhancing participation levels players of tomorrow are concentrated, encourage which, in turn, will help bolster the elite game in Wales by participation and involvement in club rugby and retain

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Gilfach Goch v Merthyr

these new rugby followers as future players, volunteers the working party reported back and the Board approved and administrators for life. The integrated schools plan the changes, concerns were raised by a number of clubs. refocuses the role of the WRU Participation Officers which Further changes, were adopted and the President, concentrated on initiatives broadly outside the classroom Chairman and Group Chief Executive visited each WRU environment. district to get further feedback. To enhance the community game further a raft of The issue remained contentious and became a significant initiatives were carried out aimed at developing the playing factor in the call for an Extraordinary General Meeting and club structure. (“EGM”) of members in June 2014. At the EGM it was agreed to host a club ballot to gain feedback which would Some 3,000 volunteers were trained during the year in serve to assist the Board deliberations on the issue. This WRU schemes focused on improving the skill set of clubs. achieved a majority in favour of the introduction of the In a link up with the Welsh Hearts charity the WRU new structure for season 2014/15 which is being facilitated the introduction of defibrillator machines to monitored by a working party and will be reviewed at the clubs along with the appropriate training from fully trained end of the season. medical staff. The partnership with the charity aims to The year was also marked by increases in rugby focused introduce the kit at all clubs in Wales. activity across the range of WRU community initiatives. A project was also launched during the year under the The WRU National Player Identification and Development leadership of the WRU National Medical Manager, Prabhat Programmes proved successful across all the five Regions Matheema to introduce new protocols and guidance on (including the North Wales Development Region) of Wales. dealing with concussion in the community game. Work on the project was well advanced for introduction during the At U14 level 2,679 players took part in organised summer of 2014. development sessions which was an increase of 663 on the last reported year and represented a 128% success above There was a significant issue of disagreement during the set targets. year over the introduction of a newly formatted SWALEC National League structure. The new structure was At the U14 Pre Dewar Shield Development Programme announced to clubs during the summer of 2013 after a 1,398 players participated which was a 155% return working party had formulated the new leagues based on against the target for Year 3 of the National Project. requests and feedback from clubs. In the 2012 Clubs At U15 level 802 players represented their respective Census many clubs cited travel costs and travel times as schools which was a 122% success rate on targets. The significant issues which needed to be addressed. But after U16 programme was also revamped during the year.

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Community rugby review

Fishguard & Goodwick unveil all weather sand training pitch

In associated activity there was progress in the design of a In the Little Stars Programme for three to seven year olds National Physical Literacy Framework in conjunction with 205 courses attracted 1,397 children with the Junior Stars Sport Wales. The WRU also partnered Swansea University hosting 35 camps for 2,119 children aged between five in the biggest and most comprehensive survey of its type and fourteen. in Europe to monitor player development within the age More than 100 children were selected throughout the year grades. to represent the WRU Rugby Stars activities at the The School of Rugby accreditation scheme increased to Millennium Stadium and other key locations. In partnership include 45 schools across Wales in a project which with the Urdd Youth organisation, the WRU Rugby Stars recognises their support for the game. Schools competition initiative was introduced to during the year. finals at U11/U14/U16/U18 were all held at the Millennium There was also an event involving 300 children who were Stadium. The Welsh Exiles programme identified a invited to watch Wales train at the National Centre of database of more than 2,500 players aged between 15 Excellence. and 30. At the older teenage level the Welsh Students A significant project saw the introduction of the WRU Group again ran their successful Freshers’ League between Disability Rugby Stars Programme with five camps being October and December. organised for 355 youngsters aged between five and The U18 Wednesday league continued to flourish with the eighteen. WRU staff undertook training through Disability WRU partnership with S4C set to increase television and Sport Wales. webcast coverage in the season ahead. Activities aimed at encouraging young people to take up The WRU Rugby Stars initiatives celebrated their third sport were enhanced with a Wales Training Day hosted at season with courses and camps held for children aged the Millennium Stadium where more than 13,000 adults from three to fourteen. and children watched the free session hosted by Warren Gatland and his coaches.

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Community rugby review

Pontyclun v Langstone Inter schools U11 final

Match Officials Coach Development A total of 567 people attended the Level 1 referees course Tag award courses proved popular with over 34 courses with 31 advancing through the induction process to Level taking place with 440 coaches attending which was an 2 status. increase of 60 on the previous year. The WRU appointed level 2 and 3 referees to more than The Rugby Leaders initiative saw 400 secondary school 8,000 community games which serves to emphasise the pupils qualified to deliver coaching to their local primary importance of the match official to the success of our feeder schools. This was the first year for this project. game. Following a review of formal qualification formats, the During the season there were highlights for a number of need for children’s coach courses with a different format our referees. – Richard Deacy refereed the Welsh Youth was identified for those who coach youngsters aged from Cup final between Penallta and Gilfach Goch, Wayne 14 upwards. Fifteen new children’s Level One courses were Davies refereed the Swalec Cup Final and the Plate and hosted with 340 coaches attending. Nine Level One bowl finals were refereed by Martyn Lewis and John Hardy courses with 200 attendees also took place. Level Two respectively. activity is on the upward trend with eleven courses run this year with 210 coaches attending which is a rise of 5% on The format and profile of the Regional age grade and last year’s figures. college programme provided excellent development opportunities for our younger referees from the academy During the year 26 coaches were qualified at Level Three and development squads. through courses hosted at the WRU National Centre of Excellence.

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Rugby Stars

The WRU undertook further Level Four courses; from the Women and Girls - Community nine candidates three have managed to complete this year, The league structure at community level remains a focus Byron Hayward Scarlets, Jason Strange Ebbw Vale RFC and as the WRU aims to encourage more women to take part Richard Lancaster Swansea University and Swansea RFC. in rugby. The remainder will complete the course during next season. The Final at Llandovery was the pinnacle of the community year. Neath Athletic secured a 36-16 victory In April 2014, Mike Morgan was recruited as a Coach over Pontyclun Falcons to secure the cup. Seven Sisters had Development Resource Manager, with immediate and to withstand a second half fight back from Pencoed before promising effect. prevailing 15-13 in the Plate Final. The Bowl Final provided The WRU also supports the IRB Tier Two and three an entertaining encounter with Maesteg Celtic staging a countries with visits from WRU staff to run a variety of remarkable second half recovery to defeat Kidwelly. The courses from Level One and sevens rugby. The countries winners overturned a 27 -5 half time deficit to eventually we have supported this year are Ukraine, Serbia, , win by a 34-31 margin. Penybanc were always in control Luxembourg and Spain. of the Vase final, prevailing 33-5 against Haverfordwest. During November 2013, the WRU organised an IRB National coaching conference with delegates from Spain, Poland, Ukraine, Portugal, Czech Republic, Russia, , and Germany. The coaches had the opportunity to watch Wales train and attend presentations from Wales Assistant coach and Gethin Watts National Academy Manager. The WRU successfully engaged with women and girls and their involvement at club level and colleges throughout the year. There was a significant increase in women and girls seeking WRU qualifications. One hundred and twenty four attended a tag award course. This consisted of female college students and women who support tag sessions at their club. This figure represents a rise of more than 400%. The Level One up take-up improved with forty three women attending courses compared with just fifteen in the same timescale last year. A course for our national team players was held with nine players attending. Neath Athletic v Pontyclun Falcons

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Community rugby review

Womens’ domestic season launch

SWALEC National Leagues Merthyr and were SWALEC League One East and West winners and have been promoted to the Ebbw Vale ran away with the SWALEC Championship for SWALEC Championship. Both clubs also progressed to the the second successive season and this time earned SWALEC Plate knock-out stages, Merthyr beating promotion into the Principality Premiership as a result. The Glynneath 66-10 at the semi-final stage and going on to club was presented with the trophy in early lift the trophy with a 29-26 win over Rhiwbina at the April after a 50-7 win over Beddau guaranteed them the Millennium Stadium SWALEC Finals Day. title with 21 wins of 21 matches to that point. They ended the season with 122 points and just one defeat – away to Rhiwbina, for their own part, were crowned SWALEC Two Narberth on the last day of the season – and completed a East winners, while Maesteg Quins won the battle with memorable rise back to the Principality Premiership four Skewen to win SWALEC Two West. Risca, Cardiff High years after being relegated. Cardiff Met finished in second School Old Boys, Ystalyfera and Gorseinon won Three East, place, closely followed by RGC 1404 in third and Pontypool Three South East, Three South West and Three West in fourth. respectively, while in Division Four, Nantyglo, St Josephs,

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Ebbw Vale SWALEC Championship winners

Gowerton and Cwmgors enjoyed victorious campaigns, Four South East St Joseph’s while two clubs from Division Four South East contested the SWALEC Bowl final at the Millennium Stadium, Clwb Four South West Cwmgors Rygbi Cymry Caerdydd seeing off Llantwit Major. Five East Llanhilleth Llanhilleth fought off local rivals RTB Ebbw Vale for the Five East title, Treherbert won Five South Central, St Albans Five West New Dock Stars lifted Five South East and New Dock Stars finished top in Five South East St Albans Five West. Ironsides and Hartridge won every game to clinch Six East and Six South East respectively Five South West Ystradgynlais while Cefn Forest won Six Central and won Six West. Five South Central Treherbert In North Wales, Bala finished as the top club, winning Six East Tredegar Ironsides SWALEC One North by two points, while Llandudno lost just one match – 15-6 away to second placed Mold – to Six South East Hartridge win Two North, and Harlech won Three North by virtue of Six West Burry Port their superior attacking qualities over second placed Menai Bridge. Six Central Cefn Fforest

Divisional Champions One North Bala Championship Ebbw Vale Two North Llandudno One East Merthyr SWALEC Plate One West Glynneath Quarter-Finals Two East Rhiwbina Glynneath 19 - 13 Maesteg Harlequins Two West Maesteg Harlequins 21 - 31 Llantwit Fardre Three East Risca Merthyr 0 - 0 Amman United (Merthyr W/O) Three West Gorseinon Rhiwbina 36 - 19 Nant Conwy

Three South East Cardiff HSOB Semi-finals Glynneath 10 - 66 Merthyr Three South West Ystalyfera Llantwit Fardre 6 - 16 Rhiwbina Four East Nantyglo Final Four West Gowerton Merthyr 29 - 26 Rhiwbina

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Community rugby review

SWALEC Plate winners Merthyr

SWALEC Bowl WRU Youth Cup Quarter-finals Penallta Youth celebrated a Welsh Youth Cup victory over Gilfach Goch at the Millennium Stadium with a 27-18 Clwb Rygbi Cymry Caerdydd 35 – 18 Nantymoel victory. Jack Condy, captain of a very skilful Penallta Youth Hartridge 15 – 30 Old Illtydians team, was presented with the WRU Youth Cup by Wales’ internationals Andrew Coombs and Alex Cuthbert, as his Llandudno 24 – 10 Ystradgynlais team became custodians of the trophy for the first time. Llantwit Major 30 - 21 Pyle Before a sizeable crowd that offered raucous vocal support Semi-finals for both teams, Penallta Youth won a very physical battle against a well-coached and very determined Gilfach Goch Llandudno 0 – 20 Clwb Rygbi Cymry Caerdydd team. Llantwit Major 18 – 15 Old Illtydians Final Llantwit Major 10 - 16 Clwb Rygbi Cymry Caerdydd

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Clwb Rygbi Cymry Caerdydd win the SWALEC Bowl

Club Operations and Support WRU shop, the provision of club advertising space and integrated social media amongst the benefits. The support provided to clubs continued to grow via the Club Operations team. The continuation of the Join the The club development grant information continued to be Beat scheme involved 122 events with marketing collated online via myWRU with 100% of clubs submitting materials, club flags and gazebos providing visibility for the statistics. The audit continued to evolve to best support clubs involved. those clubs making the greatest contribution to the development of grassroots rugby and with the link to the The WRU Club Websites scheme had overwhelming new WRU Club Websites will be significantly easier for success with 183 clubs taking up the offer. This provides clubs going forward. significant assistance to the participating clubs with links directly to the club audit, commission on sales from the The regulation introduced in 2012/13 regarding non- payment of players continues to grow. 224 clubs have now submitted their constitutions stating that they will not pay players. 2014/15 will see the investigation of clubs purporting to be paying players continue and clubs and individuals are urged to report transgressions. Clubs have also made use of the Pro Bono legal service and have tackled issues such as employment law, constitutions, incorporation and insurance. New for 2014/15 is the Welsh Rugby Club Operations Manual. Sent to clubs alongside the pre-season pack, the manual provides clubs with all the information they should require for the coming season, from league rules and regulations, rugby development, anti-doping, insurance, safeguarding, funding and volunteering information. Hopefully this will be a useful reference tool to assist our clubs in their day to day operations. The WRU continue to strive towards breaking down the barriers between Junior and Senior sections of member clubs.

Penallta win WRU Youth Cup

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Community rugby review

Burry Port Rugby Festival

Funding and Sustainability games areas and to date over 7,000 young people from across Wales have taken part in the activity. The Club Operations Team continued to advise and support Clubs to maximise both local and national funding The WRU was awarded funding from the International sources, improve financial sustainability and directly Rugby Board (IRB) via the Women’s Rugby World Cup address identified issues, needs and opportunities. (“WRWC”) Impact Programme. This funding was provided to increase the number of women and girls involved with Developments in the forthcoming season will include the rugby in the run up to the WRWC. As part of this initiative, delivery of local funding workshops providing advice and focus groups with girls aged from 14 years were held to support to Clubs on project proposals, grant application get their input into the development of the project. The procedures and funding opportunities WRU ran five ‘transition’ events around Wales entitled The implementation of the 3G Artificial Pitch Collaboration #TRYOURGAME to give women and girls the opportunity Programme in conjunction with , FAW Trust to try rugby for the first time. and Sport Wales will also take place in 2014. Next year the WRU will continue to align its strategies with During the year, the WRU received funding support from Sport Wales working towards the 2014-2019 funding a range of partners, including StreetGames, Police application. The WRU will also continue to work alongside Community Safety Partnerships and Network Rail to roll and other partners, such as Wooden out Street Rugby/Cage Rugby across communities in Spoon to develop an programme to Wales. The sessions have been run in car parks and public support the development of community rugby.

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First aid training at Pentyrch RFC

Volunteer Support and Recruitment bespoke financial and club management workshop as well as a financial mentoring programme. During the year, the Club Operations Team increased engagement with our volunteer workforce significantly. Safeguarding Over 3,000 volunteers undertook training provided by the One of the key priorities for the Club Operations Team has WRU, both direct one to one training (1,059) and been to design and develop a safeguarding training plan throughout training events (2,071). and deliver this to ensure that all Club Safeguarding Officers (“CSOs”) have the necessary skills and support to Keen to establish this direct engagement and support, the create a safe and positive environment for the next Club Operations Team continued to champion investment generation of players and volunteers. 46 club training into volunteer training targeting emergency aid training events have been delivered over the 2013/14 season. and other priorities on the community medical pathway. Emergency aid was not the only focus. Food hygiene and To build on this positive engagement and ensure that the groundsmanship featured regularly in the funding volunteer workforce have continual professional applications received demonstrating the breadth of development, this has been supplemented by 9 further volunteering in rugby. nationally led events, where 130 CSOs have received further training in partnership with Sports Coach UK, This season saw the introduction of the Natwest through the Safeguarding and Protecting Children Course. Rugbyforce ‘Creating a Sustainable Club’ workshop. 18 workshops were held across Wales giving volunteers the Key aims and objectives over the coming season are to opportunity to share good practice, to learn lessons from ensure that every rugby club in Wales has a CSO and to each other and to gain further knowledge on how to deliver further training opportunities for CSOs, coaching develop their clubs. 92 clubs attended over the course of staff and club volunteers through an online training the season. Moving forward, the Natwest Rugbyforce package and face to face training. workshop system has been developed to include a

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Stadium review

Toulon win Heineken Cup Final

The Impact of the Stadium changing rooms to learn about how match days are structured. The success of these tours contributed to the A new independent survey into the economic impact of stadium receiving the Tripadvisor Certificate of Excellence the Millennium Stadium revealed that it generates more 2014 which signified that it consistently earned than £130m a year for the city and nation and sustains outstanding feedback from visitors. more than 2,500 permanent jobs. The report carried out by Econactive Ltd for the Welsh Rugby Union Group New Projects & Improvements concluded that the financial benefits delivered by events During the year, the Stadium celebrated its fifteenth at the Stadium are highly significant within the context of anniversary and significant changes and improvements Welsh tourism. It found that, on average, more than either took place or were announced which represented 770,000 paying visitors attended the main events such as major investment in the Stadium infrastructure. international rugby and rock music concerts each year. The report also revealed that some 70% of the visitor spend is Undoubtedly one of the most significant announcements non-local in origin which represents a significant additional during the year was the plan to install a new Desso pitch impact on the Welsh economy. The survey was the second system. The pitch surface is part grass and part synthetic, report of its kind and clearly showed that the economic is used by most premiership football clubs and represents impact of the Stadium is very substantial to Wales and is a step change in the playing surface at the Stadium. The increasing over time. new Desso pitch will replace the original pallet system which involved laying concrete plinths and pallets of soil This year, close to 60,000 people also took guided tours and root zone, on which a final turf layer was added. This of the Stadium. This represented a 10% increase in footfall new pitch project will also see the latest ‘plug and play’ for the guided tours on the previous year. These tours offer broadcast technology introduced to the Stadium. This is a a unique insight into the history and infrastructure of the vast improvement for all of the Stadium’s media and Stadium with guests visiting areas such as the team broadcast partners and bodes well for the future. The final

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Cleaning the Stadium masts

piece of the new pitch project will see the procurement of at the Millennium Stadium since it opened in 1999. It was a Terraplas pitch covering system. This durable covering of quite fitting that Cardiff hosted the first and last Heineken plastic tiles will allow the full range of concerts and other Cup Finals. The Stadium also played host to the opening events to take place on the pitch throughout the year. The ceremony of the Rugby League World Cup with two new permanent pitch system will herald a vast games including England versus Australia and Wales versus improvement in pitch quality and also ensures that Italy. Domestic rugby from Wales was celebrated at the international and club football tournaments will be able to Stadium during the year with now familiar fixtures such as take place at the Stadium in future. the SWALEC Finals Day, Judgement Day and the hosting of the annual Varsity Match between Swansea and Cardiff The players’ changing rooms at the venue are also among Universities. a list of areas that have been agreed for upgrading and modernisation. In respect of player standards, it The range of non-rugby related activity held in the stadium was also agreed during the year that a new state-of-the- was ably demonstrated with Bruce Springsteen returning art medical centre will be installed within the Stadium to the venue in July 2013 with his Wrecking Ball Tour. One where player injuries can be assessed and treated new venture during the year was the hosting of the W- immediately. Ales Beer Festival; this was the first time the festival, which celebrates real ales brewed in Wales, was held at the In a project more visible to fans and television audiences, Stadium and proved a great success. These activities were a new LED ribbon board for advertising and crowd complimented with a full schedule of community events engagement was installed on the middle tier balcony area. which saw the Stadium host charities and local This project saw the Stadium develop its relationship with organisations at various smaller-scale events during the Sportseen who have become the Stadium’s official year. Again, this demonstrates how the Stadium is advertising partner. This new LED asset will maximise the adaptable for a variety of event needs within the capital commercial and engagement impact during all games and city of Wales. other major events hosted at the Stadium. Events at the Stadium have contributed more than half a Stadium Events million pounds to charitable causes generated from bucket During the year, the Stadium staged the last ever Heineken collections at the venue. Over £529,000 has been donated Cup Final before the new Rugby Champions Cup is to charity from Welsh rugby matches alone since the introduced from next season. It was the seventh Heineken Stadium first opened in 1999. Cup Final to be held in Cardiff and the fifth to take place

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Stadium review

W-Ales Beer Festival

During the year, a number of promotional events were new initiative is the ‘well water recovery system’ that is hosted at the Stadium to promote the countdown to the now being used in the Stadium. In an effort to further Rugby World Cup 2015, for which eight fixtures including reduce the carbon footprint of the Stadium, well water two quarter finals will be held at the Stadium. Part of this from a bore hole in the ground is gathered and, in activity focused on seeking volunteers to help behind-the- conjunction with the rain water capture system, is used to scenes during the tournament and also to highlight how water the pitch and clean the venue. membership of a local rugby club will be beneficial for New Management those seeking to secure tickets for games. There was also a change of senior personnel, with Lt Col Sustainable Development Mark Williams, formerly of the 2nd Battalion, The Royal The venue continues to lead the way on sustainability and Welsh, taking over as Stadium Manager. is the first UK Stadium to reach the recertification point for ISO 2012 (Sustainable Events Management). An important

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Directors’ report for the year ended 30 June 2014

Gareth Williams, Company Secretary

The Directors present their report and the Group and exchange risk with the use of forward contracts. As Company’s audited financial statements for the year ended at 30 June 2014, the Group has no material foreign 30 June 2014. exchange risk (2013: £nil). Principal activities and review of the business • Interest rate risk The Group has interest bearing liabilities. As shown The principal activity of the Group is to promote, foster, in Note 14, the Group’s policy is to part hedge encourage, control and improve rugby football throughout against any interest risk on liabilities by using Wales. This activity and the likely future development of derivative instruments to effectively hedge the the Group are reviewed in the Chairman’s Statement, the interest rate risk. The Group has interest bearing Group Chief Executive’s Summary and the Strategic assets which are invested at differing interest rates; Report. these interest rates are fixed at the outset of the Results for the year investment. The results for the year are set out in the consolidated • Credit risk profit and loss account on page 72 and show a profit on The Group has no significant concentration of credit ordinary activities before taxation of £2.4m (2013: £2.3m). risk. The Group has implemented policies that require Financial risk factors appropriate credit checks on potential credit customers before sales commence. Interest bearing The Group is exposed to financial risks from interest assets are only invested with financial institutions that bearing assets and liabilities and interests in overseas have excellent credit ratings. companies. These expose the Group to financial risks including foreign currency risk, interest rate risk, credit risk • Liquidity risk and liquidity risk. The Group maintains a balance between continuity of funding and flexibility. As at 30 June 2014, only • Foreign exchange risk 24% (2013: 30%) of the borrowings were due to Where applicable, the Group mitigates foreign expire within five years.

President’s Cap presentation

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WRU Safeguarding seminar

Fixed assets Policy on payment to creditors The Millennium Stadium, recorded at a carrying value in The Group and Company’s policy, concerning the payment the financial statements of £86m (2013: £90m), is a of the majority of its trade creditors, is to: unique asset. The asset is recorded at historical cost less • set the terms of payment with those suppliers when depreciation and due to the unique nature of the asset an agreeing the terms of each transaction; alternative use valuation is not considered appropriate. If the Millennium Stadium was valued at replacement cost • ensure that those suppliers are made aware of the terms the carrying value recorded in the financial statements of payment by inclusion of the relevant terms in would be c.£200m. contracts; and Directors • pay in accordance with its contractual and other legal obligations. The Directors who held office during the year and up to the date of signing the financial statements are listed on Corporate social responsibility page 95. The Group recognises its responsibility to the communities The Group’s primary charitable donation was £78,000 which are affected by its businesses and regularly reviews (2013: £57,000) to the Welsh Rugby Charitable Trust. This its policies with regard to social, ethical and environmental trust, which is independent from the Group, was set up to matters. Any matters in any of these categories which may provide support to players who were injured whilst playing materially affect the business of the Group are reviewed rugby in Wales. There were no political donations (2013: as required by the Board. £nil).

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Directors’ report for the year ended 30 June 2014

Llandudno win 2 North

Going concern Accepted Accounting Practice (UK Accounting Standards and applicable law). Under company law, the Directors The Directors have reviewed the financial position of the must not approve the financial statements unless they are Group for a period of two years from the year end against satisfied that they give a true and fair view of the state of the expected recurring operational income, expenditure affairs of the Group and the Company and of the profit or and interest costs in conjunction with the Group’s banking loss of the Group for that year. In preparing these financial covenants. On this basis the Directors consider that the statements, the Directors are required to: Group has more than sufficient resources to continue in operational existence for the foreseeable future. For this • select suitable accounting policies and then apply them reason the Directors continue to adopt the going concern consistently; basis in preparing the Group’s financial statements. • make judgements and accounting estimates that are Statement of Directors’ responsibilities reasonable and prudent; The Directors are responsible for preparing the Annual • state whether applicable UK Accounting Standards have Report and the financial statements in accordance with been followed, subject to any material departures applicable law and regulations. disclosed and explained in the financial statements; and Company law requires the Directors to prepare financial • prepare the financial statements on the going concern statements for each financial year. Under that law the basis unless it is inappropriate to presume that the Directors have prepared the Group and Company financial Company and the Group will continue in business. statements in accordance with Generally

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Street Stars in Blaenavon

The Directors are responsible for keeping adequate make themselves aware of any relevant audit information accounting records that are sufficient to show and explain and to convey that information to the Company’s auditors. the Company’s transactions and disclose with reasonable Independent auditors accuracy at any time the financial position of the Company and the Group and enable them to ensure that the PricewaterhouseCoopers LLP have indicated their financial statements comply with the Companies Act 2006. willingness to continue in office and a resolution to They are also responsible for safeguarding the assets of the reappoint them will be proposed at the forthcoming Company and the Group and for taking reasonable steps Annual General Meeting. for the prevention and detection of fraud and other By Order of the Board irregularities. The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Disclosure of information to auditors So far as the Directors are aware, there is no relevant audit information of which the Company’s auditors are unaware Gareth Williams and the Directors have taken all the steps necessary to Company Secretary

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Consolidated profit and loss account for the year ended 30 June 2014

Pre- Exceptional Total Total exceptional Note 2014 2014 2014 2013 £’000 £’000 £’000 £’000

Turnover 2 (a) 58,493 - 58,493 60,962

Administrative expenses 2 (b) (56,826) 1,628 (55,198) (57,133)

Operating profit before depreciation, exceptional items and allocations to affiliated organisations (“EBITDA”) 27,300 - 27,300 29,018 Allocations to affiliated organisations 2 (d) (22,471) - (22,471) (22,063) Exceptional items 4 - 1,822 1,822 - Depreciation (net of grant release) 4 (3,162) (194) (3,356) (3,126)

Operating profit 3,295 3,829

Interest payable and similar charges 3 (1,190) (1,712) Interest receivable and similar income 3 20 15 Fair value gains on derivative financial instruments 3 257 201

Profit on ordinary activities before tax 4 2,382 2,333

Tax on profit on ordinary activities 6 (552) 3,270

Profit for the financial year 18 1,830 5,603

There is no material difference between the profit on ordinary activities before tax and the profit for the financial year stated above and their historical cost equivalents. The turnover and operating profit shown above are derived from continuing operations. The Group has no other recognised gains or losses in the year (2013: £nil) and accordingly a statement of total recognised gains and losses has not been presented.

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Balance sheets as at 30 June 2014

2014 2013 2014 2013 Group Group Company Company Note £’000 £’000 £’000 £’000

Fixed assets Tangible assets 8 127,256 132,010 38,346 38,357 Investments 9 - - 60 60 127,256 132,010 38,406 38,417 Current assets Stock 10 352 188 - - Deferred tax asset 16 - - 150 199 Financial assets - Debtors 11 8,060 6,071 78,554 77,416 - Cash at bank and in hand 12 79 791 - 90 8,491 7,050 78,704 77,705 Current liabilities Creditors – amounts falling due within one year 13 (28,758) (28,698) (23,563) (22,977)

Net current (liabilities)/assets (20,267) (21,648) 55,141 54,728

Total assets less current liabilities 106,989 110,362 93,547 93,145

Creditors – amounts falling due 13 (54,954) (58,100) (54,954) (58,100) after more than one year

Accruals and deferred income 15 (37,459) (39,307) - -

Deferred tax liability 16 (1,459) (1,668) - -

Net assets 13,117 11,287 38,593 35,045

Capital and reserves Other reserves 18 2,314 2,314 2,610 2,610 Profit and loss account 18 10,803 8,973 35,983 32,435

Capital employed 13,117 11,287 38,593 35,045

These financial statements were approved by the Board of Directors on 19 September 2014 and signed on its behalf by:

David Pickering Roger Lewis Chairman Group Chief Executive Officer

The notes on pages 75 to 92 form an integral part of these financial statements. The Welsh Rugby Union Limited Company Number 3419514

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Consolidated cash flow statement for the year ended 30 June 2014

2014 2014 2013 2013 Note £’000 £’000 £’000 £’000

Net cash inflow from operating activities 22 7,931 3,650

Returns on investments and servicing of finance Interest received 20 15 Interest paid (1,177) (1,799)

Net cash outflow from returns on investments (1,157) (1,784) and servicing of finance

Taxation (1,699) (1,743)

Capital expenditure and financial investment Purchase of tangible fixed assets (350) (724) Grant repaid (100) (100)

Net cash outflow for capital expenditure and (450) (824) financial investment

Financing Drawdown of bank loans 5,000 7,500 Repayment of bank loans (10,308) (6,825) Debentures redeemed (29) (14)

Net cash (outflow)/inflow in respect of financing (5,337) 661

Decrease in net cash in the year 23 (712) (40)

The notes on pages 75 to 92 form an integral part of these financial statements.

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Notes to the financial statements for the year ended 30 June 2014

1. Accounting policies Leasehold buildings are depreciated over the lower of 50 years and the remaining life of the lease. The Group’s financial statements are prepared on the going concern basis, under the historical cost convention, excluding e. Investments in subsidiaries adjustments to historical cost attributable to fair value Investments in subsidiaries are included at cost less any provision movements, in accordance with the Companies Act 2006 and for impairment. applicable accounting standards in the United Kingdom. The Group’s accounting policies, which have been applied In accordance with the Companies Act 2006, the Group has consistently, are as set out below. taken advantage of the exemption afforded to certain subsidiary companies to be audited. The Welsh Rugby Union Limited has a. Basis of consolidation given a guarantee to its subsidiary WRU Supporters Club Limited The consolidated financial statements incorporate the financial under section 479A of the Companies Act 2006. statements of The Welsh Rugby Union Limited and its f. Trade investments subsidiaries, Millennium Stadium plc, WRU Supporters Club Limited, WRU National Centre of Excellence Limited and Trade investments are valued at cost less any provision for Millennium Stadium Experience Limited, all of which are made impairment. up to 30 June 2014 and prepared using consistent accounting g. Leased assets policies. All intergroup transactions are eliminated on consolidation. Where the Group enters into a lease which entails taking substantially all the risks and rewards of an asset, the lease is b. Turnover treated as a “hire purchase arrangement”. The present value of Turnover represents amounts invoiced, excluding value added tax, the minimum lease payments is recorded in the balance sheet as in respect of the sale of goods and services. Ticket income, sale a tangible fixed asset. Future instalments under such leases, net of hospitality packages, competition income and other event of finance charges, are included within creditors. Rentals payable income are recognised as revenue when the related event is are apportioned between the finance element, which is charged staged. Revenue determined by commercial contracts, which to the profit and loss account, and the capital element which makes up the majority of broadcasting revenue, sponsorship and reduces the outstanding hire purchase liability. royalty revenue and lease of hospitality boxes is recognised based All other leases are accounted for as “operating leases” and their on the relevant contractual terms. Where consideration is rentals are charged to the profit and loss account on a straight received in kind, income and expenditure are grossed up on the line basis over the life of the lease. basis of arms’ length commercial rates. h. Stock c. Exceptional items Stock is valued at the lower of cost and net realisable value and In order to improve the understanding of the financial consists of finished goods purchased for resale. Where necessary, statements, the Directors have identified separately, on the face provision is made for obsolete, slow moving and defective stock. of the profit and loss account, those items of income and charge Cost is determined on a first in first out basis. which by their size, nature and/or incidence are exceptional to the financial statements for the year. These are shown as i. Current and deferred tax exceptional within the categories of expenditure to which they relate. The tax expense comprises current and deferred tax. The current tax charge is calculated on the basis of tax laws enacted or d. Tangible fixed assets substantively enacted at the Balance Sheet date. Tangible fixed assets are stated at historic cost less accumulated Deferred tax is recognised in respect of all timing differences that depreciation. Cost includes the original purchase price of the have originated but not reversed at the Balance Sheet date, asset and the costs attributable to bringing the asset to its where transactions or events that result in an obligation to pay working condition for its intended use. more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. The tangible fixed assets of the Group, excluding land, are depreciated on a straight line basis calculated to write down their A net deferred tax asset is recognised as recoverable and cost to estimated residual values over their estimated useful therefore recognised only when, on the basis of all available economic lives as follows: evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried Stadium Up to 50 years forward tax losses and from which the reversal of underlying Other buildings Up to 50 years timing differences can be deducted. Centre of Excellence Up to 10 years Other Fixed assets Up to 10 years

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Notes to the financial statements for the year ended 30 June 2014

Deferred tax is measured at the average tax rates that are rugby union governing bodies. The market rate of interest for expected to apply in the periods in which the timing differences similar instruments is 0%, giving a fair value of the underlying are expected to reverse, based on tax rates and laws that have financial instrument that is the same as the debenture book been enacted or substantively enacted by the Balance Sheet date. value. The residual asset value of the premium for the right to Deferred tax is measured on a non-discounted basis. purchase tickets is therefore £nil. j. Pension costs n. Trade debtors The Group operates defined contribution schemes. Trade debtors are recognised initially at fair value and subsequently measured at amortised cost less provision for The pension costs in respect of the defined contribution pension impairment. They are first assessed individually for impairment, schemes comprise contributions payable in respect of the year. or collectively where the debtors are not individually significant. k. Grants Where there is no objective evidence of impairment for an individual debtor, it is included in a group of debtors with similar Grants receivable in respect of tangible fixed assets are credited credit risk characteristics and these are assessed collectively for to the profit and loss account over the expected useful economic impairment based on their ageing. Movements in the provision lives of the relevant assets to which they relate. Grants received for impairment are recorded in the profit and loss account. but not yet released to the profit and loss account are included as deferred income in the balance sheet. Revenue grants are o. Trade creditors released to the profit and loss account in the same year as the Trade creditors are obligations to pay for goods or services that related expense. have been acquired in the ordinary course of business from l. Capitalisation of interest suppliers. They are initially recognised at fair value and subsequently measured at amortised cost. Interest is capitalised on major development projects and capital works in progress where appropriate. Capitalisation ceases when p. Cash at bank and in hand substantially all the activities necessary to get the asset ready for Cash at bank and in hand includes highly liquid investments that use are completed. Capitalised interest is amortised to the profit are readily convertible into known amounts of cash and which and loss account over the useful economic life of the asset to are subject to an insignificant risk of change in value. which it relates. q. Recognition of constructive liabilities m. Financial instruments Where an event occurs that creates a constructive or legal The derivative instruments utilised by the Group are interest rate obligation on the Group and it is probable that an outflow of swaps and foreign currency forward contracts. Derivatives are resources, which can be reliably estimated, will be required to initially accounted for and measured at fair value on the date a settle the obligation a liability is recognised in full in the period derivative contract is entered into and subsequently measured at when the event occurred. fair value based on market price data from relevant counterparties. The gain or loss on re-measurement is taken to Constructive liabilities are measured at the present value of the profit and loss account except where the derivative is a expenditures expected to be required to settle the obligation. In designated cash flow hedging instrument. Whilst the Directors certain circumstances the transfer of cash to settle the liability are of the belief that these derivatives are commercially effective may occur in subsequent periods. hedges, the Group has elected not to apply hedge accounting. The instruments are carried at fair value with changes in fair value being recognised immediately in the profit and loss account. Debenture loans are initially recognised at their fair value on inception and are subsequently measured at amortised cost as they have been categorised as other financial instruments in accordance with FRS26. Debenture loans are considered compound financial instruments and, in accordance with FRS26, are bifurcated into the underlying financial instrument and a premium for the right to purchase tickets over the life of the debenture. The fair value on inception of the underlying financial instrument is estimated as the present value of all future cash flows, discounted using the prevailing market rates of interest for similar instruments issued by other

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2. Segmental information As set out in the Directors’ report, the Group has only one business segment and all income is derived from activities within the UK. The information below is provided as additional information. Business analysis (a) Turnover 2014 2013 Turnover is analysed as follows: £’000 £’000 Match income 32,438 32,106 Competition income 8,861 9,123 Commercial income 13,991 13,140 Other event income 1,468 3,476 Other income 1,735 3,117 58,493 60,962

Other event income represents amounts receivable in respect of staging fees and other similar income arising within the Millennium Stadium for events which are not promoted by the Company. In 2014, other income includes £0.4m (2013: £0.4m) of grants received from Sport Wales, matched by expenditure included in community rugby costs, and in 2013 other income also included income derived from the British and Irish Lions’ Tour. Competition income represents amounts received from Limited and Celtic Rugby Limited in consideration for the participation of WRU nominated teams in the respective tournaments of those entities. To the extent that the nominated teams have participated in those tournaments there is, under the terms of the participation agreements with the nominated teams, an obligation on the Group to remit any competition income, less any costs incurred by the Group in respect of the competitions, to them.

(b) Total costs are as follows: 2014 2013 £’000 £’000 Operational costs (see (c) below) 31,193 31,944 Exceptional costs (see note 4) (1,822) - Depreciation – net of grant release 3,162 3,126 Accelerated depreciation (exceptional) 194 - Allocations to affiliated organisations (see (d) below) 22,471 22,063 55,198 57,133

(c) Operational costs: 2014 2013 £’000 £’000 Business & administration 6,119 6,012 Direct 12,996 13,705 Elite rugby 4,355 4,228 Community rugby 2,734 2,691 Stadium 4,989 5,308 31,193 31,944

(d) Allocations to affiliated organisations 2014 2013 £’000 £’000 These are analysed as follows: Regions – professional rugby 17,071 16,849 Clubs – semi-professional rugby 1,136 1,226 Clubs – community rugby & affiliates 4,264 3,988 22,471 22,063

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Notes to the financial statements for the year ended 30 June 2014

3. Financing costs 2014 2013 £’000 £’000 Interest payable and similar charges Interest payable on bank and similar loans 818 959 Interest payable on corporation tax settlement 84 547 Amortisation of debenture issue costs 13 13 Bank charges 275 193 Total 1,190 1,712

Interest receivable and similar income Short term deposits 20 15 Total 20 15

Fair value gains on derivative financial instruments Interest rate cap 32 (1) Interest rate floor (289) (200) Total (257) (201)

Total net financing costs 913 1,496

Fair value losses on derivative financial instruments Derivative financial instruments are held for economic hedging purposes although they do not qualify as accounting hedges under FRS 26. Consequently, the Group’s derivative instruments are fair valued at each balance sheet date with the net loss or gain recognised in the profit and loss account. 4. Profit on ordinary activities before tax Profit on ordinary activities before tax is arrived at after charging/(crediting): 2014 2013 £’000 £’000

Depreciation on owned assets 4,910 4,873 Accelerated depreciation (exceptional) 194 - Release of deferred income (grant release) (1,748) (1,747) Net charge to the profit and loss account 3,356 3,126 Rental of land and buildings 363 358 Trade debtors impairment 18 12

Exceptional items Notes Rebate from business rates reassessment (a) (1,989) - Legal and professional costs (b) 167 - Accelerated depreciation (exceptional) (c) 194 - Total exceptional items (1,628) -

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4. Profit on ordinary activities before tax (continued) During the year, the Group incurred charges that due to their size and nature were considered “exceptional”. In order to assist in understanding the Group’s results the Directors believe that it was appropriate to show separately the operating profit of the Group before exceptional items on the face of the profit and loss account as additional information. Detailed commentary is shown below: (a) Following the 2005 and 2010 rateable value assessments, the Group challenged the value ascribed to the Millennium Stadium. The Group received notification during the year that this challenge had been successful. The revised assessment resulted in lower business rates charges for the period 2005 to 2014. Refunds that have been received in respect of overcharged rates for the period 2005 to 2013 have been treated as exceptional income. (b) During 2014, the Group incurred legal and professional costs that were considered exceptional. (c) During 2014, the Group took the decision to replace the palletised pitch system at the Millennium Stadium with a Desso Grassmaster pitch system. Consequently the depreciation on the palletised pitch system was accelerated to reduce the carrying value to £nil. This accelerated depreciation has been treated as exceptional. During the year, the Group obtained the following services from the Group’s auditor: 2014 2013 £’000 £’000

Fees payable to Company auditor for the audit of the parent company and consolidated 27 27 financial statements Fees payable to the Company’s auditor for other services: The audit of the Company’s subsidiaries pursuant to legislation 20 19 Taxation compliance services 28 28 Other non-audit services 80 110

5. Staff numbers and costs Staff numbers 2014 2013 2014 2013 Group Group Company Company The monthly average number of employees, including directors in a service contract, during the year was:

Management and administration 60 61 32 32 Direct 23 23 20 20 Elite rugby 35 35 35 35 Community rugby 57 57 57 57 Stadium 36 39 - - 211 215 144 144

The above staff numbers do not include any players representing national teams, stewards engaged for events nor do they include the non-executive Directors of the Company.

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Notes to the financial statements for the year ended 30 June 2014

5. Staff numbers and costs (continued) Staff costs 2014 2013 2014 2013 Group Group Company Company £’000 £’000 £’000 £’000 The staff costs during the year were as follows: Wages and salaries 7,803 7,996 5,926 6,110 Social security costs 795 883 619 704 Pension costs – defined contribution schemes 688 507 523 390 9,286 9,386 7,068 7,204

In addition to the above amounts, £2.2m (2013: £2.4m) is paid as remuneration to players whilst representing the National Squad. These costs are included in Direct costs within Operational costs (see Note 2 (c)). Directors’ emoluments 2014 2013 £’000 £’000 The Directors’ emoluments, during the year, were as follows: Aggregate emoluments 378 362 Benefits 24 21 Company contributions to defined contribution pension scheme - - 402 383

The emoluments above include a fee of £35,000 (2013: £35,000) payable to the Chairman. The Group received £18,000 (2013: £17,000) from third parties in respect of the above emoluments. There is one Director accruing benefits under a defined contribution pension scheme (2013: none). Emoluments of the highest paid director 2014 2013 £’000 £’000 The emoluments of the highest paid director, during the year, were as follows: Aggregate emoluments 343 327 Benefits 10 10 353 337 6. Tax on profit on ordinary activities 2014 2013 £’000 £’000 (a) Analysis of charge/(credit) in the year Current tax UK corporation tax on result for the year 870 945 Adjustment in respect of prior years (109) (3,737) Total current tax charge/(credit) (Note 6(b)) 761 (2,792)

Deferred tax Origination and reversal of timing differences 13 (397) Changes in tax rates and laws (222) (81) Total deferred tax (209) (478)

Total tax charge/(credit) on profit on ordinary activities 552 (3,270)

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6. Tax on profit on ordinary activities (continued) (b) Factors affecting the current tax charge/(credit) for the year

The current tax assessed for the year is different (2013: different) from the standard rate of corporation tax in the UK of 22.5% (2013: 23.8%). The differences are explained below: 2014 2013 £’000 £’000 Profit on ordinary activities before tax 2,382 2,333

Profit multiplied by standard rate of corporation tax in the UK of 22.5% (2013: 23.8%) 536 554 Effects of: Accelerated capital allowances and other timing differences 90 212 Permanent differences 247 179 Adjustment in respect of prior years (109) (3,737) Effects of other tax rates/credits (3) - Current tax charge/(credit) for year (Note 6(a)) 761 (2,792)

In addition to the changes in rates of corporation tax disclosed above, further changes to the UK corporation tax rates were substantively enacted as part of the Finance Bill 2013 on 2 July 2013. These include reductions to the main rate to reduce the rate to 21% from 1 April 2014 and to 20% from 1 April 2015. As the changes were substantively enacted by the balance sheet date their effects should be included in these financial statements and therefore deferred tax has been calculated at 20%. 7. Profit of the Company The Company has not presented its own profit and loss account, as permitted by section 408 of the Companies Act 2006. The profit before and after tax for the financial year in respect of the Company was £4.1m and £3.5m (2013: £5.6m and £5.6m) respectively.

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Notes to the financial statements for the year ended 30 June 2014

8. Tangible fixed assets Centre of Other Other Group Company Stadium Excellence buildings Land fixed assets Total Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 Cost At 1 July 2013 138,598 3,148 1,687 37,629 5,235 186,297 39,670 Additions - 153 --197 350 149 Transfers 204 ---(204) -- Disposals ----(1,508) (1,508) - At 30 June 2014 138,802 3,301 1,687 37,629 3,720 185,139 39,819 Accumulated depreciation At 1 July 2013 48,769 937 1,057 - 3,524 54,287 1,313 Charge for the year 4,058 279 105 - 662 5,104 160 Disposals ----(1,508) (1,508) - At 30 June 2014 52,827 1,216 1,162 - 2,678 57,883 1,473 Net book value At 30 June 2014 85,975 2,085 525 37,629 1,042 127,256 38,346 At 30 June 2013 89,829 2,211 630 37,629 1,711 132,010 38,357

Included in the cost of the stadium are cumulative capitalised interest costs of £4.6m (2013: £4.6m). The depreciation charge includes an amount of £0.1m (2013: £0.1m) representing the depreciation of interest previously capitalised. Other fixed assets comprise plant and machinery and fixtures and fittings. The tangible fixed assets of the Company predominantly relate to land as shown above. 9. Investments The Group holds no material investments. The Company held a £50,000 equity investment in Millennium Stadium plc and a £10,000 equity investment in WRU National Centre of Excellence Limited at both 30 June 2014 and 30 June 2013. Both investments are held at historical cost. Subsidiary and other investments held directly by the Company and in which the Company has a beneficial interest, as at 30 June 2014 and 30 June 2013 were: Company Principal activity Country of % holding of incorporation ordinary shares Millennium Stadium plc Stadia operation United Kingdom 100% Millennium Stadium Experience Limited Dormant United Kingdom 100% WRU Supporters Club Limited Marketing United Kingdom 100% WRU National Centre of Excellence Limited Provision of training facilities United Kingdom 100% Six Nations Rugby Limited Competition management 17% European Rugby Cup Limited Competition management Republic of Ireland 17% Celtic Rugby Limited Competition management Republic of Ireland 33% British Lions Limited Overseas rugby tours Republic of Ireland 25%

In addition to the shareholdings above the Company is one of nine members of European Professional Club Rugby, a Swiss association whose principal activity is managing the new European club competitions. Given the disposition of the other shareholdings, the Group’s inability to exercise significant influence over the investments above with less than 100% shareholdings and the immateriality of their net surpluses and net assets after receipt of income by the Group in the other investments above, the Directors do not believe that these investments fall to be treated as associate companies. Fixed assets investments are stated at the lower of cost and valuation. Cardiff County Council (“CCC”) holds one share in Millennium Stadium plc; this share grants only certain rights and does not grant CCC any dividends nor any rights to amounts receivable upon winding up.

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10. Stock Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Goods for resale 352 188 - -

11. Debtors Amounts due within one year: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Trade debtors 3,735 3,132 1,588 1,347 Loans due from clubs 716 771 716 771 Less: provision for impairment of receivables (899) (931) (756) (776) 3,552 2,972 1,548 1,342 Prepayments and other debtors 4,508 3,099 2,014 2,577 8,060 6,071 3,562 3,919

Amounts due after more than one year: Amounts owed by Group undertakings - - 74,992 73,497

Total debtors 8,060 6,071 78,554 77,416

The amounts due from subsidiary undertakings are unsecured and have no fixed dates of repayment. An interest charge at equivalent rates to the bank loan arrangements is levied on outstanding amounts due from subsidiary undertakings. The carrying amount of debtors is a reasonable approximation of fair value and the carrying amounts of the Group’s debtors are all denominated in UK Sterling (“GBP”). As of 30 June 2014, trade debtors and loans due from clubs with a carrying value of £0.9m (2013: £1.0m) were impaired and provided for. The amount of the provision was £0.9m as of 30 June 2014 (2013: £0.9m). The ageing of these debtors is as follows: 2014 2013 £’000 £’000

3 to 6 months past due 73 185 Over 6 months past due 836 795 909 980

The debtors determined as individually impaired were amounts in excess of 3 months past due that were owed by various categories of customer. These debts have not been written off and the Group is pursuing these amounts due.

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Notes to the financial statements for the year ended 30 June 2014

11. Debtors (continued) Trade debtors that are less than three months past their due date are not considered impaired. As of 30 June 2014, trade debtors of carrying value of £1.4m (2013: £0.8m) were past their due date but not impaired. These are balances from a number of independent customers and the credit risk on these customers is assessed as low. The ageing of trade debtors that are past due but not impaired is the following: 2014 2013 £’000 £’000

Up to 3 months past due 1,151 399 3 to 6 months past due 200 210 Over 6 months past due 5 210 1,356 819

Movements on the provision for impairment of trade debtors are as follows: 2014 2013 £’000 £’000

At start of year 931 948 Debtors written off during the year (18) (29) Unused amounts reversed (14) - New amounts charged to profit and loss - 12 At end of year 899 931

12. Cash at bank and in hand Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Cash balance at bank 79 791 - 90

13. Creditors Amounts falling due within one year: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Bank loans 7,832 10,267 7,832 10,267 Trade creditors 3,075 3,038 1,480 597 Amounts owed to group undertakings - - 8 - Corporation tax 1,887 2,825 1,585 2,825 Other tax and social security 260 372 195 305 Other creditors 202 188 202 188 Accruals and deferred income 15,502 12,008 12,261 8,795 28,758 28,698 23,563 22,977

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13. Creditors (continued) Amounts falling due after more than one year: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Bank loans 17,135 20,008 17,135 20,008 Debentures 37,605 37,621 37,605 37,621 Derivative financial liability (note 14) 214 471 214 471 54,954 58,100 54,954 58,100

Maturity analysis: Bank loans are due: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Within one year 7,832 10,267 7,832 10,267 Between one and two years 2,890 2,705 2,890 2,705 Between two and five years 4,245 7,303 4,245 7,303 In more than five years 10,000 10,000 10,000 10,000 24,967 30,275 24,967 30,275

The Group’s term loan is repayable by fixed amounts per quarter, inclusive of interest and capital. The maturity analysis above is based on an estimation of LIBOR by the Directors for the remaining term. If the Directors’ estimate above is incorrect then the maturity analysis will change accordingly. The principal terms of these loans are set out below: Bank loans Interest and capital repayment terms 2014 2013 £’000 £’000

Revolving credit facility LIBOR plus 2.50%, loan repayable on maturity date 5,000 7,500 Term loan LIBOR plus 2.00%, loan repayment in instalments by 2021 9,967 12,775 Tranche C Interest and capital is payable only in the event of default 10,000 10,000 or certain other defined events 24,967 30,275

The principal terms of the bank loans shown above relate to the primary instrument and do not take account of derivative instruments. Interest on amounts drawn on the revolving credit facility is referenced to the LIBOR rate applicable to the draw period. At 30 June 2014 the revolving credit facility was drawn for a period of 1 month. Interest on the term loan is re-priced every 3 months and referenced to 3 month LIBOR. The carrying amounts of the Group’s borrowings, which include bank loans and debenture loans, approximate their fair value. The carrying amounts of the Group’s borrowings are all denominated in GBP.

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Notes to the financial statements for the year ended 30 June 2014

13. Creditors (continued) Security provided on bank loans Bank loans totalling £25.0m (2013: £30.3m) are secured by fixed and floating charges over the assets of the Company and certain of its subsidiaries. Borrowing facilities The Group had £12.5m (2013: £10.0m) of undrawn committed borrowing facilities available at 30 June 2014 in respect of which all conditions precedent had been met at that date. Debenture loans are repayable in: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

2021 360 360 360 360 2024 13,019 13,019 13,019 13,019 2026 486 486 486 486 2027 2,425 2,425 2,425 2,425 2028 350 350 350 350 2030 4,833 4,833 4,833 4,833 2035 1,768 1,781 1,768 1,781 2050 14,527 14,543 14,527 14,543 37,768 37,797 37,768 37,797 Unamortised issue costs (163) (176) (163) (176) 37,605 37,621 37,605 37,621

All debenture loans are unsecured and bear no interest. Bank and debenture loans repayable by instalments wholly or partly after 5 years Bank loans, with a total value of £25.0m (2013: £30.3m), are repayable wholly or partly from the balance sheet date by instalments. Of these amounts, £10.0m (2013: £10.0m) is repayable after five years. Debenture loans, with a total value of £37.6m (2013: £37.6m), are repayable wholly from the balance sheet date. Of these amounts, £37.6m (2013: £37.6m) is repayable after five years.

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14. Borrowings and financial instruments Treasury policy Treasury activity is focused on monitoring working capital, managing external funding and managing interest rate risk. Treasury activity is not a profit centre and the Group neither enters into transactions of a speculative nature nor trades in financial instruments. Treasury risk management policies are summarised below: • Foreign exchange risk – where applicable, the Group mitigates foreign exchange risk with the use of forward contracts. As at 30 June 2014 the Group had no material foreign exchange risk (2013: £nil). • Interest rate risk – operations are financed through a mixture of bank borrowings and debenture loans. The Group currently borrows in floating rates of interest and uses derivative financial instruments to generate the desired interest profile and to manage exposure to interest rate fluctuations. At 30 June 2014 some 76% (2013: 66%) of bank borrowing was economically hedged with derivatives. • Liquidity risk – the Group’s policy is to maintain a balance between continuity of funding and flexibility. As at 30 June 2014, 24% (2013: 30%) of borrowings were due to mature within five years, some 22% (2013: 24%) were due to mature between five years and fifteen years and some 54% (2013: 46%) were due to mature after fifteen years. The directors believe the disclosure of a sensitivity analysis on interest rate risk is not appropriate as the interest rate cap and collar agreements, as set out below, mitigate against any material exposure. Financial instruments At 30 June 2014 the notional principal amounts of derivatives relating to interest rate cap and collar agreements were £11.4m and are analysed as follows: Instrument Notional Fair market amount value Maturity date £’000 £’000

Interest rate cap 3.75% 11,400 34 30 June 2018 Interest rate floor 2.10% 11,400 (248) 30 June 2018

At 30 June 2013 the notional principal amounts of derivatives relating to interest rate cap and collar agreements were £13.3m and are analysed as follows;

Instrument Notional Fair market amount value Maturity date £’000 £’000

Interest rate cap 3.75% 13,300 66 30 June 2018 Interest rate floor 2.10% 13,300 (537) 30 June 2018

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Notes to the financial statements for the year ended 30 June 2014

14. Borrowings and financial instruments (continued) During the year to 30 June 2014, none of the Group’s derivatives qualified for hedge accounting under FRS 26 (2013: £nil). These instruments are carried at fair value as analysed below: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Interest rate cap 34 66 34 66 Interest rate floor (248) (537) (248) (537) Derivative financial liability (214) (471) (214) (471)

In accordance with FRS 26, ‘Financial instruments: Recognition and measurement’, the Group and Company have reviewed all contracts for embedded derivatives that are required to be separately accounted for if they do not meet certain requirements set out in the standard. Neither the Group nor the Company have such embedded derivatives as per FRS 26. 15. Accruals and deferred income Grants Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

At start of year 39,307 41,154 - - Amounts repaid (100) (100) - - Released to the profit and loss account (1,748) (1,747) - - At end of year 37,459 39,307 - -

During the year some £1.7m (2013: £1.7m) was released to the profit and loss account from the grants amount shown above. Included within the grants amount above is an amount received from the Big Lottery Fund (formerly the Millennium Commission) amounting to £28.4m (2013: £29.6m). This grant will be released to the profit and loss account as follows:

Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Within one year 1,196 1,196 - - Between one and two years 1,196 1,196 - - Between two and five years 3,588 3,588 - - In more than five years 22,379 23,575 - - 28,359 29,555 - -

In certain circumstances, the above grant can become repayable if the Group fails to meet the monitoring requirements of the grant. The Group is currently in full compliance with the monitoring requirements such that no monies are repayable under the terms of the grant.

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16. Deferred tax liability Deferred tax The movement on deferred tax is as follows: Group Group Company Company 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Liability/(asset) at start of year 1,668 2,146 (199) (222) (Released)/charged to the profit and loss account (326) (478) 65 23 Adjustment in respect of previous years 117 - (16) - At end of year 1,459 1,668 (150) (199)

Deferred tax provided/(recognised) is made up as follows: Accelerated capital allowances 1,612 1,955 - - Tax losses carried forward - (86) - - Other timing differences (153) (201) (150) (199) 1,459 1,668 (150) (199)

17. Company limited by guarantee The liability of the members is limited. Every member of the Company undertakes to contribute such amounts as may be required (not exceeding £1) to the Company’s assets if it should be wound up while the member is a member, or within one year after a member ceases to be a member, for payment of the Company’s liabilities contracted before a member ceased to be a member. At the balance sheet date the number of members was 335 (2013: 336). 18. Reserves Profit and loss account Other reserves Total £’000 £’000 £’000 Group At 1 July 2013 8,973 2,314 11,287 Retained profit for the year 1,830 - 1,830 At 30 June 2014 10,803 2,314 13,117

Profit and loss account Other reserves Total £’000 £’000 £’000 Company At 1 July 2013 32,435 2,610 35,045 Retained profit for the year 3,548 - 3,548 At 30 June 2014 35,983 2,610 38,593

Company - retained profit for the year 2014 is analysed as follows: £‘000 Profit before tax 4,073 Tax charge (525) 3,548

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Notes to the financial statements for the year ended 30 June 2014

19. Contingent liabilities Group The Group had the following contingent liabilities as at 30 June 2014: ● The Group has guaranteed the performance of some member clubs in respect of loans that the member clubs have received from Barclays Bank PLC. The amounts due are £1.2m (2013: £1.2m). Company The Company had the following contingent liabilities as at 30 June 2014: • The Company has guaranteed the performance of one of its subsidiaries under the terms of grant arrangements amounting to £37.5m (2013: £39.3m). ● The Company has guaranteed the performance of some member clubs in respect of loans that the member clubs have received from Barclays Bank PLC. The amounts due are £1.2m (2013: £1.2m). The Group and Company are dealing with a small number of legal claims. The Directors have reviewed all of these claims and, on the basis of legal advice received, believe that no provision is necessary. Consequently no provision for these claims has been included in these financial statements. 20. Commitments Capital commitments of the Group: 2014 2013 £’000 £’000

Authorised and contracted: 3,128 -

The Company had no capital commitments at 30 June 2014 or 30 June 2013. Operating lease commitments: At the balance sheet date, the Group had the following annual commitments, under non-cancellable operating leases: 2014 2013 £’000 £’000 Land and buildings Expiring after five years 362 357

21. Pension costs The Group operates defined contribution schemes. The assets of the defined contribution pension schemes are held separately from those of the Group, under independent administration. The pension cost charge for these schemes represents contributions payable by the Group to the schemes in the year amounting to some £0.7m (2013: £0.5m). There are no material amounts included in creditors in respect of these pension costs in 2014 or 2013.

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22. Reconciliation of operating profit to net cash inflow from operating activities

2014 2013 £’000 £’000

EBITDA 27,300 29,018 Allocations to affiliated organisations (22,471) (22,063) Exceptional items 1,822 - Depreciation (4,910) (4,873) Exceptional depreciation (194) - Release of deferred income 1,748 1,747 Operating profit 3,295 3,829

Non-cash items: Depreciation 4,910 4,873 Exceptional depreciation (194) - Release of deferred income (1,748) (1,747) 3,356 3,126 Working capital adjustments: (Increase)/decrease in stock (164) 3 Increase in debtors (1,989) (2,020) Increase/(decrease) in creditors 3,433 (1,288) 1,280 (3,305) Net cash inflow from operating activities 7,931 3,650

23. Reconciliation of net cash flow to movement in net debt 2014 2013 £’000 £’000

Decrease in cash in the year (712) (40) Cash outflow/(inflow) from movement in debt 5,337 (661) Non-cash changes (13) (13) Decrease/(increase) in net debt during the year 4,612 (714) Net debt at the beginning of the year (67,105) (66,391) Net debt at the end of the year (62,493) (67,105))

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Notes to the financial statements for the year ended 30 June 2014

24. Analysis of net debt Bank debt Bank debt due within due after Cash one year one year Debentures Total £’000 £’000 £’000 £’000 £’000

At 1 July 2013 791 (10,267) (20,008) (37,621) (67,105) Cashflow (712) 5,267 41 29 4,625 Non-cash changes - (2,832) 2,832 (13) (13) At 30 June 2014 79 (7,832) (17,135) 37,605 (62,493)

At 1 July 2012 831 (6,788) (22,812) (37,622) (66,391) Cashflow (40) (675) - 14 (701) Non-cash changes - (2,804) 2,804 (13) (13) At 30 June 2013 791 (10,267) (20,008) (37,621) (67,105)

25. Related party transactions In accordance with the exemption afforded by FRS 8, ‘related party transactions’, there is no disclosure in these financial statements of transactions with entities that are part of the Group. 26. Post balance sheet events In August 2014 the Group signed the “Rugby Services Agreement” with the four Regions. This six year agreement, to 30 June 2020, outlines the allocations the Regions will receive over that period and provides an operating framework for elite rugby in Wales.

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Independent auditors’ report to the members of The Welsh Rugby Union Limited

Report on the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether Our opinion caused by fraud or error. This includes an assessment of: In our opinion the financial statements, defined below: • whether the accounting policies are appropriate to • give a true and fair view of the state of the group’s the group’s and the company’s circumstances and and of the company’s affairs as at 30 June 2014 and have been consistently applied and adequately of the group’s profit and cash flows for the year then disclosed; ended; • the reasonableness of significant accounting • have been properly prepared in accordance with estimates made by the directors; and United Kingdom Generally Accepted Accounting • the overall presentation of the financial statements. Practice; and In addition, we read all the financial and non-financial • have been prepared in accordance with the information in the Annual Report & Consolidated Financial requirements of the Companies Act 2006. Statements to identify material inconsistencies with the This opinion is to be read in the context of what we say in audited financial statements and to identify any the remainder of this report. information that is apparently materially incorrect based What we have audited on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we The group financial statements and company financial become aware of any apparent material misstatements or statements (the “financial statements”), which are inconsistencies we consider the implications for our report. prepared by The Welsh Rugby Union Limited, comprise: Opinion on other matter prescribed by the • the Balance Sheets as at 30 June 2014; Companies Act 2006 • the Consolidated Profit and Loss Account for the year In our opinion the information given in the Strategic Report then ended; and the Directors’ Report for the financial year for which • the Consolidated Cash Flow Statement for the year the financial statements are prepared is consistent with the then ended; and financial statements. • the notes to the financial statements, which include Other matters on which we are required to report by a summary of significant accounting policies and exception other explanatory information. Adequacy of accounting records and information and The financial reporting framework that has been applied explanations received in their preparation is applicable law and United Kingdom Under the Companies Act 2006 we are required to report Accounting Standards (United Kingdom Generally to you if, in our opinion: Accepted Accounting Practice). • we have not received all the information and In applying the financial reporting framework, the directors explanations we require for our audit; or have made a number of subjective judgements, for example in respect of significant accounting estimates. In • adequate accounting records have not been kept by making such estimates, they have made assumptions and the company, or returns adequate for our audit have considered future events. not been received from branches not visited by us; or What an audit of financial statements involves • the company financial statements are not in agreement with the accounting records and returns. We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & We have no exceptions to report arising from this Ireland)”). An audit involves obtaining evidence about the responsibility. amounts and disclosures in the financial statements

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Independent auditors’ report to the members of The Welsh Rugby Union Limited

Directors’ remuneration Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the directors As explained more fully in the Statement of Directors’ Responsibilities set out on page 70, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Mark Ellis (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Cardiff 19 September 2014

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Welsh Rugby Union governance year ended 30 June 2014

Patron and Office Bearers: The Board of Directors of The Welsh Rugby Union Patron Limited Her Majesty Queen Elizabeth II Non-executive chairman: Vice Patron David Pickering His Royal Highness The Duke of Cambridge Executive: President Roger Lewis (Group Chief Executive) Dennis Gethin Non-executive members: Governance of Welsh Rugby Kenneth Hewitt (non-executive vice chairman) The principal activity of the Group is to promote, foster, Mal Beynon encourage, control and improve the game of rugby Gerald Davies CBE, DL throughout Wales. The Board of The Welsh Rugby Union Martin Davies Limited (“Board”) is responsible for ensuring that the Geraint Edwards principal activity is managed, which it does through the Gordon Eynon Welsh Rugby Group Executive Board. The Board comprises Humphrey Evans a non-executive Chairman, sixteen non-executive Directors Brian Fowler and one executive Director. Roy Giddings Richard Gwynn Russell Howell Anthony John Alan Jones Alwyn Jones Aurwel Morgan Ray Wilton At the Annual General Meeting 2014, David Pickering, Gerald Davies, Roy Giddings and Aurwel Morgan will retire from the Board. They will be replaced by Anthony Buchanan, Gareth Davies, Chris Morgan and David Young. Company Secretary Gareth Williams WRU Staff workshop Welsh Rugby Union Group – Executive Board Chairman: Roger Lewis (Group Chief Executive) Executive: Rhodri Lewis Head of Legal Affairs Josh Lewsey Head of Rugby (appointed 30 September 2013) Craig Maxwell Head of Group Sales and Marketing Julie Paterson Head of Group Compliance Steve Phillips Group Finance Director Mark Williams Stadium Manager (appointed 2 October 2013) hosts a Stadium tour John Williams Head of Communications

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Welsh Rugby Union governance for the period ended 30 June 2014

WRU Staff seminar A mascot is chosen for every Wales home game

Board Committees The Board and the Executive Board acknowledge the value of the principles of good governance. The Group are During the year, the Board operated three principal sub- committed to adopting the principles of best practice in committees to assist in its business. The role and corporate governance. The Group will ensure that each membership of the sub committees were as follows: member of the Board undergoes training in the role of the The Finance Committee, chaired by Martin Davies, non-executive Director to be delivered by an appropriate comprised David Pickering, Kenneth Hewitt, Roger Lewis, organisation (such as the ). The Group Humphrey Evans, Gordon Eynon and Steve Phillips. The are committed to further training and development of the Finance Committee is responsible for all financial matters Board. of the Group other than dealing with the Group’s auditors. During the year, the Board was presented with Sir Robert The Regulatory Committee, chaired by Mal Beynon, Owen’s review of the Company’s governance structures. comprises Geraint Edwards, Brian Fowler, Russell Howell, The findings of this review and the recommendations are Aurwel Morgan, Ray Wilton, and Julie Paterson. It is being considered by the Board. responsible for disciplinary matters and the management Board and Executive Board of all leagues and cup competitions in operation. There is a clear division of responsibility between the role The Game Policy Committee, chaired by Alan Jones, of non-executive Chairman and Group Chief Executive. comprises Roy Giddings, Gerald Davies, Richard Gwynn, There is a detailed limit of authority protocol in place for Anthony John and Alwyn Jones. In addition to Josh Lewsey, both the Board and the Executive Board. All Executive non-Board members of the Game Policy Committee Board members have detailed job descriptions in addition included Mike Rein, Ian Parker, Sophie Bennett, Martyn to limits of authority. Ryan, Jason Lewis, Gethin Watts and Nigel Whitehouse. The Game Policy Committee is responsible for the The Board meets on a monthly basis and considers all development of the game at all levels, including age matters under its terms of reference which include the groups, coaching and referees. development and monitoring of the Group’s strategic plan, allocation of financial resources, reviewing the Development of Corporate Governance performance of the Group Chief Executive and Executive Both the Board and the Executive Board remain committed Board and approval of annual budgets. to the continuing development of governance structures, In addition, the Board considers the recommendation of in order to meet the evolving needs of the game of rugby the Board’s standing committees, whose responsibilities union. relate to Finance, Regulatory and Game Policy as shown above.

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Amlin Cup Final WRU AGM

Appointments and Remuneration Panel Registered office and advisers The Appointments and Remuneration Panel advises the Registered office Board on the remuneration and terms and conditions of Millennium Stadium the Group Chief Executive and the Executive Board. The Westgate Street, panel consists of the Chairman of the Board, the Vice- Cardiff CF10 1NS Chairman of the Board and the three Chairs of the Independent auditors standing sub-committees: Finance, Game Policy and PricewaterhouseCoopers LLP Regulatory. The Committee relies on expert independent Chartered Accountants and Statutory Auditors professional advice when deemed necessary. One Kingsway, The Audit Panel Cardiff CF10 3PW The Audit Panel, chaired by Martin Davies, included Dyfrig Principal solicitors John and Geraint Davies as non-Board members. The Audit Hugh James LLP Panel is responsible for assisting the Board discharge its Hodge House responsibilities for accounting policies, financial reporting, 114 - 116 St. Mary Street, internal control and risk management and liaising with the Cardiff CF10 1DY Group’s auditors. Bankers Remuneration and benefits of the Board Barclays Bank PLC 3rd Floor Windsor Court Under the Group’s remuneration policy, no fees are 3 Windsor Place, payable to non-executive Board members, other than the Cardiff CF10 3ZL non-executive Chairman who receives an annual fee of £35,000. The Welsh Rugby Union Limited & Millennium Stadium plc Millennium Stadium, Westgate Street, In addition, the Board are represented on other rugby Cardiff CF10 1NS bodies including The International Rugby Board (“IRB”), Six Nations Rugby Limited, European Rugby Cup Limited, Tel: + 44 (0)870 013 8600 British Lions Limited and Celtic Rugby Limited some of Email: [email protected] whom have a policy of financially compensating the www.wru.co.uk representatives serving on these bodies. www.millenniumstadium.com

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Welsh Rugby Union governance Board of Directors for the period ended 30 June 2014

Non Executive Chairman David Pickering Joined the WRU Board in 1998 as a national representative. He is a member of The Six Nations Committee and in 2012 was appointed to the board of Rugby World Cup Ltd. He is chairman of the Board of the Millennium Stadium and a member of the International Rugby Board Council. He also chairs the Appointments and Remuneration Panel and is a member of the Finance Committee. He won 23 caps for Wales between 1983 and 1987 captaining the national team eight times and played his club rugby for Neath and Llanelli. He then coached Neath RFC and later became Manager of the Wales A team and then the senior national team. Outside his rugby involvement he retains private business interests and holds a number of directorships.

Executive Roger Lewis Group Chief Executive Appointed as Group Chief Executive of the Welsh Rugby Union and the Millennium Stadium in 2006 and also represents the WRU on the boards of the European Rugby Cup Ltd, Celtic Rugby Ltd and the Six Nations Committee. He is also President of Cefn Cribwr RFC. Before joining the WRU he was Managing Director of ITV Wales. Previously he was Managing Director and Programme Controller of Classic FM and Board Director of its parent company GWR plc; Managing Director at EMI Records: Worldwide President of the Decca Record Company and Head of the BBC Radio 1 Music Department.

Non Executive Vice Chairman Ken Hewitt Joined the WRU Board in 1993 and represents District A. He has represented the WRU on the Board of the European Rugby Cup Ltd, the International Rugby Board and the Welsh Youth Rugby Union. He is currently a member of the Millennium Stadium Board and sits on the Appointments and Remuneration Panel and the Finance Committee. He was on the original working party for the Millennium Stadium project He played youth and senior rugby for Cwmtillery and Abertillery before joining Abergavenny where he coached the youth and senior sides. He was honorary secretary for the club for 20 years along with a role as honorary secretary of the then League. He is a retired head teacher.

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Mal Beynon Joined the WRU Board in 1997 and represents District A. He is Chairman of the WRU Regulatory Committee, a member of the Millennium Stadium Board and sits on the Appointments and Remuneration Panel. He has been an active member of Brynmawr RFC for 60 years, first as a player and then a committee member including terms as Treasurer, Vice Chairman and Chairman. He is now a Life Member of the club. Now retired he worked as a scaffolder before managing his own finance business.

Gerald Davies CBE DL Joined the WRU Board in 2005 as a national representative. He won 46 caps for Wales and was a British and Irish Lion in 1968 and 1971. He played for London Welsh RFC and played for and captained Cardiff RFC. He was Manager of the 2009 Lions on their tour of South Africa. He is a member of the Game Policy Committee. He has been an Executive Officer with Sport Wales and a non-executive Director and Chairman of HTV. He was also Chairman of the Welsh Youth Agency. He is an author, a rugby columnist for The Times, a member of the of Bards and Deputy Lord Lieutenant of Gwent.

Martin Davies Joined the WRU Board in 2003 as a national representative. He also currently serves on the Millennium Stadium Board and is Chairman of the WRU Finance Committee, a member of the Appointments and Remuneration Panel, Chairman of the Audit Panel and an executive member of the Rugby Europe Committee (formerly FIRA-AER). He is a former player for Cardiff Youth and Wanderers and served as Secretary of Crawshays Welsh. He is a retired chartered accountant and worked for Price Waterhouse Coopers (PwC), Standard Chartered Banking Group and Hillsdown Holdings. He was also director of a private manufacturing company. He was a Cardiff councillor for 29 years.

Geraint Edwards Joined the WRU Board in 1993 and represents District E. He also currently serves on the Millennium Stadium Board. He is Chairman of the WRU Disciplinary Committee and is a member of the ERC Disciplinary Sub Committee. He is a former Citing Commissioner at Rugby Europe., ERC and Six Nations level. He is a Life Member of Dunvant RFC having been a member of the club for 55 years having played for the club’s youth and senior sides for 18 seasons before fulfilling the roles of fixture secretary for 25 years and chairman for 10 years. He is a former tool maker with ICI and Ford and was part of the Production Management team at British Leyland for over 25 years. He is now retired.

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Welsh Rugby Union governance Board of Directors for the period ended 30 June 2014

Humphrey R Evans Joined the WRU Board in 2002 and represents District C. He is a former player for Aberdare RFC and since retiring from the game has served on the club committee for 40 years. He is a former fixture secretary and was elected Chairman 28 years ago. He is a member of the Finance Committee. Now retired he worked for Unilever as a sales representative and is now a lay preacher for the Unitarian Church.

Gordon Eynon Joined the WRU Board in 2011 and represents District H. After playing youth rugby for Narberth, he represented Whitland RFC, Gwernyfed RFC, Breconshire, Carmarthen Quins RFC and Crymych RFC at senior level. He was head coach at Crymych for three years before becoming club secretary in 1989, a position he still holds today and is now a Life Member of the club. He has been a District H committee member since 1995 and chaired the district from 2009 to 2011. He is a member of the Finance Committee. He is a former schoolmaster and currently runs a farm in .

Brian Fowler Joined the WRU Board in 2002 and represents District F. He is a member of the Regulatory Committee. He played rugby for St Luke’s College Exeter, Llanelli RFC, RFC, Brynamman RFC and Tycroes RFC. He was later secretary of Ammanford RFC for 23 years. He has been a local government officer for County Council since 1989 having previously worked for the .

Roy Giddings Joined the WRU Board in 1988 and represents District B. He is a member of the Game Policy Committee. He is a former player for Pencoed RFC and was secretary of the club from 1963-1988. He has been secretary of the East District since 1976. He studied cost accountancy before completing his National Service in 1961 and joined the British Steel Corporation in 1962 as a departmental cost accountant. He later became cashier of Llanwern Steelworks until his retirement in 1999.

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Richard Gwynn Joined the WRU Board in 2011 and represents District E. He is a member of the Game Policy Committee. He played for Swansea Uplands RFC and has been club secretary for 33 years. He is also Vice President of Crawshays Welsh. He is a former WRU referee and is a former secretary of the Swansea and District Referees Society. He is a Citing Commissioner. He was treasurer of the British Telecom and Post Office Rugby Union (affiliated to the RFU) from 1984 to 1986.

Russell Howell Joined the WRU Board in 1997 and represents District B.

He is a WRU representative on Rugby Europe. He became Chairman of Pentyrch RFC while still playing for the club. He was then club president for eight years and is now a Life Member. He also chaired District B before being elected onto the WRU board. He is a member of the Regulatory Committee.

He is a retired haulage contractor.

Alan Jones Joined the WRU Board in 2003 and represents District D. He chairs the WRU Game Policy Committee, is a member of the Appointments and Remuneration Panel and was formerly a member of the WRU League Management Committee. He played for Birmingham University and Bryncoch RFC which he also captained. He is a Life Member of the club having been club secretary for the past 21years. He was also the club’s chairman for 10 years. He was an IT specialist for Wales Gas, BP and BT. He has also carried out volunteer work for the Age Concern charity helping elderly people learn IT skills.

Aurwel Morgan Joined the WRU Board in 2005 and represents District D. He is a member of the Regulatory Committee. He played rugby for Cwmgwrach RFC, University of Wales , Aberystwyth RFC, Cardiganshire, Winchester, Hampshire, Glynneath RFC and Sports RFC. He has been Chairman of District D and was secretary of Bridgend Sports RFC for 30 years. He is a citing commissioner to test match level. He is a retired lecturer in Agriculture and Head of Department at Glamorgan College of Agriculture.

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Welsh Rugby Union governance Board of Directors for the period ended 30 June 2014

Ray Wilton Joined the WRU Board in 1998 and represents District C. He is a member of the Regulatory Committee. He is also a Citing Commissioner to test match level. He has been a member of the Tylorstown RFC committee for 30 years and represented the club on the Mid District Committee from 1971. He became chairman of the Mid District selectors. He was also a member of the WRU’s League Management Committee. He worked as a development engineer in the power industry and was also employed by the Hoover washing machine manufacturer for 36 years.

Alwyn Jones Alwyn joined the WRU Board in 2012 and represents District J. He is a member of the WRU Game Policy Committee and Trustee of the Millennium Stadium Charitable Trust. He is a member and former player, captain and secretary of Bangor RFC. He represented North Wales as a player, and was secretary of District J for 16 years. Alwyn is currently employed by HMRC.

Anthony John Re-joined the WRU Board in 2012 and represents District G. He sat on the WRU League Management Committee from 1993 to 2003. Anthony is a member of the Game Policy Committee. He is also Vice President of the Llanelli and District Rugby Union, has served as a committee member for Kidwelly RFC for 30 years, Fixture Secretary for 10 years and is a Trustee of the club. He captained the Zambian National team while working in the region, and played for Loughor and Kidwelly. He worked as Site Manager for Dwr Cymru Welsh Water for 33 years.

Company Secretary Gareth Williams He is Senior Partner with Hugh James, the largest law firm in Wales with offices in Cardiff and London. He is a specialist in commercial litigation and a sports lawyer. He is also a director of Thomas Carroll Group plc. Gareth chairs the Board of Directors of the Royal Welsh College of Music and Drama, Governor of the University of South Wales, Trustee of the Welsh Rugby Charitable Trust. He is formerly a deputy judge and Chairman of the Wales Commercial Law Association.

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Welsh Rugby Union governance Executive Board for the period ended 30 June 2014

Roger Lewis Group Chief Executive Roger Lewis chairs the Executive Board. He is also a director of the WRU. His biography appears on page 98.

Josh Lewsey Head of Rugby The England, British and Irish Lions and London Wasps multiple trophy winning international joined the WRU Group in October 2013 as Head of Rugby. In addition to playing the game professionally he worked externally in a number of management roles after graduating from Bristol University, The College of Law and the Royal Military Academy Sandhurst. Immediately following his retirement from rugby he specialised within business consulting for PwC as a management consultant leading a range of strategic change projects across various sectors and industries. He also traded financial markets, moving to the trading floor of Citibank before reviewing the Equities asset class, thus earning the role of EMEA Head of Business Advisory Services.

Steve Phillips Group Finance Director Steve Phillips joined the WRU Group as Group Finance Director in January 2007. He joined from TBI which was one of the largest regional airport owners in the world and in his ten years at the company he played active roles in the acquisition of airports in Belfast, Sweden, London Luton, Bolivia, Costa Rica, Australia and North America. He trained with KPMG and qualified as a Chartered Accountant in 1989. He was previously Finance Director at the Tedcastle UK Group before joining TBI as Group Financial Controller and then Group Finance Director. He played rugby for Amman Valley Comprehensive School, Imperial College London, University of London and Amman United, where he captained the first XV.

Rhodri Lewis Head of Legal Affairs Rhodri Lewis joined the WRU Group in August 2010. He started his legal career at the international law firm Freshfields Bruckhaus Deringer in London, before joining the commercial legal department at UEFA (the European football governing body, based in Switzerland) working predominantly on Champions League, Europa League and UEFA European Football Championships matters. Rhodri left UEFA to become the Senior Solicitor at The FA Group and was responsible for a broad range of legal matters in relation to both The Football Association (including in relation to the 2010 FIFA World Cup) and . He played rugby throughout his time at Ysgol Gyfun Gymraeg Glantaf and has played rugby for Dinas Powys, for teams in London, Thailand, Hong Kong, Australia and Switzerland and for the University of London.

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Welsh Rugby Union governance Executive Board for the period ended 30 June 2014

Julie Paterson Head of Group Compliance Julie Paterson has been the Head of Group Compliance for the WRU Group since 2005.

Since joining the WRU Group in 1989 Julie has served in a number of areas across the business dealing directly with strategic and operational issues related to the management of International, Regional and Club rugby, which includes matters such as the WRU Club support and operations teams, and liaison with other rugby governing bodies, World Rugby (formerly the IRB) and stakeholders, partners or associates such as the Welsh Government, Sport Wales and local authorities.

Mark Williams Stadium Manager Mark Williams was appointed as Stadium Manager for the WRU Group in October 2013. He joined the WRU Group after a military career spanning 20 years during which he rose to the rank of Lieutenant Colonel in The Royal Welsh. He served on multiple tours of duty in , Bosnia, Kosovo and Iraq and he was decorated for his actions in combat in Iraq in 2007. During his military career he held some very high-profile military appointments in both the training and operational environments including time as a Battalion Adjutant, Company Commander and Battle Group Chief of Staff with the 2nd Battalion, The Royal Welsh. He played rugby for Neath College, Glynneath RFC and his Regiment.

Craig Maxwell Head of Group Sales and Marketing Craig Maxwell became the Head of Group Sales and Marketing of the WRU Group in 2010 after joining from Under Armour where he had been the USA based sportswear company’s Head of Sports Marketing in the UK and Ireland since 2008. Whilst at Under Armour, Craig worked on the launch of the brand’s footwear and was integral in building the Under Armour brand across all sports in the UK and Ireland. He had previously worked for the WRU Group between 2004 and 2008 in various roles within the hospitality team before becoming Group Sponsorship Manager. He played rugby for Greenhill Comprehensive School in Tenby and for Pembroke Dock, Narberth and Tenby at the senior level.

John Williams Head of Communications John Williams joined the WRU Group as Head of Communications in January 2007. He was formerly Head of News at ITV Wales for nine years and under his stewardship ITV Wales News won the coveted Royal Television Society Regional News Programme of the Year Award for the first time in 2003. He began his journalistic career as a reporter on the South Wales Echo and then joined the Sunday Mirror as a staff reporter working on a number of major assignments in the UK and abroad. He is an alumni of the National Council for the Training of Journalists. His rugby began at school in where he was a member of the school team which were Dewar Shield semi-finalists. He later played for Merthyr RFC and Cefn Coed RFC.

104 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014 WRU ARA 2014 1a:Layout 1 23/09/2014 12:11 Page 105

Obituaries

Ian Robinson world’s largest pipeline systems, running 800 miles from (21 February 1944 – July 2014) wells at Prudhoe Bay to the port of Valdez. Ian Roger Robinson, widely known as ‘Robbo’, was a one club man. Denzil Thomas In a playing career which spanned 16 years he featured (21 April 1921 – 17 Feb 2014) 384 times for Cardiff and also played 178 games for the A match winner on his Welsh debut, Denzil Thomas died Athletic between 1964 and 1980. after a long battle with Parkinson’s Disease. The second row won two Welsh caps in 1974, against His only cap was against Ireland in 1954 where his last France and England and at 6ft 6in he was the tallest lock minute drop goal at gave Wales a slender in his day to wear the red jersey. He also represented the 12-9 win. Barbarians and Crawshays XV. He learned his rugby at Llandeilo before playing for Handel Greville Brynamman, Skewen and Neath before joining Llanelli. (13 September 1921 – 20 June 2014) He also played for Bath, Cwmgors, the RAF and Tenby Handel, who was 92 when he passed, had held the United. He was a schoolmaster in Bridgend before distinction of being the oldest living Welsh international. spending 30 years as a Sports Master in Greenhill Grammar School in Tenby. A scrum-half by trade, he won his solitary cap for Wales in the 6-0 victory over Australia on Saturday 20 December Gerry Wallace 1947. (23rd May 1945 – 6 Dec 2013)

Born in Drefach, he lined up alongside the likes of Jack Gerry Wallace played 259 times for Cardiff between 1965 Matthews, and Ken Jones for the famous and 1975 as part of a team which boasted the likes of win over the Wallabies, played out in front of a 45,500 Gareth Edwards, and Gerald Davies in its squad. strong crowd at the National Stadium, Cardiff Arms Park. He earned a reputation as a free running forward who scored a total of nine tries for the Arms Park team. He He was a former captain of Llanelli Rugby Club, who also played for Wales B and was one of the 25 players played for both Carmarthen Athletic and Swansea and presented with a President’s Cap for playing against Tonga later became president, chairman and secretary of Llanelli in 1974. RFC. Keith Bradshaw William James Darch (7 April 1939 – 2 February 2014) (24 Mar 1923 – 20 Jan 2014) Keith Bradshaw won nine caps and scored 36 points in his Dr Darch died aged 90, after a short illness. He played for international career and was a key member of the team Wales in 1945 and last November the WRU awarded that won the Five Nations Championship in 1966, kicking Presidents’ caps to 25 players who played in non-test two penalties as Wales beat France 9-8 in the final game. matches, including Dr Darch. Bradshaw, from Cefn Cribwr, was Captain of Bridgend RFC He obtained a degree and PhD from Cardiff University in in the 1965/66 season. He made his debut for Wales in the the 1940s before he went to work for BP starting his career 6-6 draw with England at Twickenham in January 1966 at Llandarcy Oil Refinery and worked his way up. and in his second Test against Scotland scored a try, conversion and penalty as Wales won 11-3 in Cardiff. He commissioned BP refineries in Australia, Toronto and Bradshaw toured South Africa with Wales the same year. Montreal and eventually became head of BP’s world-wide refineries, which led him to become president of the He died, aged 74, after a long illness. consortium that built the trans-Alaska pipeline – one of the

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108 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2014

The Welsh Rugby Union Limited & Millennium Stadium PLC Millennium Stadium, Westgate Street, Cardiff CF10 1NS Tel: +44 (0)870 013 8600 Email: [email protected] www.wru.co.uk www.millenniumstadium.com