November 26, 2019 Page 1 of 14 C 7 - CW Info November 26, 2019 Page 2 of 14 C 7 - CW Info

2019 Annual Report November 26, 2019Message From the Chair Page 3 of 14 Message From the CEO C 7 - CW Info

Whatever you can do or dream you can, begin it. Boldness has genius, and magic and power in it. Begin it As the fiscal year began in July 2018, I did not anticipate that in eight months time, on a crisp February day, now.” – Goethe the Board of Governors would elect me to the role of CEO. Always an aspiration of mine, the reality of the role, especially one bearing full responsibility for the Association’s success or failure, gave me pause, but On behalf of the Board of Governors, we are pleased to present this annual report and at the AGM, share a also a renewed sense of loyalty and pride in how far this organization has come in 150 years and how much glimpse of the impactful future vision of your Association. potential remains to be seen. The past fiscal year presented its own challenges and opportunities, as we worked through the gaming PHOTO Four months into my first year as CEO, I am learning daily what it takes to hold the top job. I have begun negotiations and prepared for potential future business models. In December 2018, we learned that gaming to see WFA from a new perspective. In my previous roles as CFO and CAO, I was often focused internally would be relocating from Western Fair to a location in the south-west end of London. This announcement on business units, budgets, fiscal well-being and corporate administration. In the role of CEO, one’s focus focused the Board and Management on envisioning a new future for the Association. As the quote above quickly turns to vision, strategy, building solid, productive relationships, communicating with stakeholders, acknowledges, if we could dream it, we could do it, and much of the past fiscal year has been spent and setting the tone for a strong work culture. preparing for a bright, new future. It’s early days, but I am lucky to have a knowledgeable and supportive Board, a strong membership, a The path ahead is becoming clear as our leadership, management and the Board develop and begin management team that is passionate and dedicated and staff that are hard working and knowledgeable. executing on a transformational strategic plan. This is the exciting beginning of the next era of the Western With everyone’s support, and my own commitment to the Association, together we will work towards Fair Association without gaming. The WFA has significant resources to focus on the evolution of the a successful, re-envisioned future for the site, a focused business strategy that will honour our deep organization: our existing commercial operations, valuable physical assets, financial resources and most agricultural roots, and a commitment to the communities we serve. I am looking forward to the year ahead importantly, people. We are confident in the continued success of Western Fair Association as we diversify and I thank you all for your support thus far. and grow our revenue streams as a sustainable organization which will benefit our stakeholders in the City of London, surrounding region and agriculture community. Reg Ash

The Board would like to thank our CEO, Reg Ash and our dedicated employees for their effort and creativity CEO, Western Fair Association in building the future. We would also like to honour Hugh Mitchell and Mike Woods for their excellent leadership and contributions. Finally, I would like to thank our Board of Governors for their passionate engagement in the long-term success of our WFA. Thank you for your commitment to the Western Fair Association. Respectfully, Joseph G. Dales Chair, Board of Governors 2 3 WESTERN FAIR ASSOCIATION November 26, 2019 Page 4 of 14 Consolidated Statement of Financial Position C 7 - CW Info 2018-2019 Governance As of June 30th, 2019 June 30, 2019, with comparative information for 2018

2019 2018 Assets Current assets:

BOARD OF GOVERNORS PROGRAMMING COUNCIL SENATORS Cash $ 4,948,318 $ 5,318,247 Financials JOE DALES, Chair MARY ANNE ZWAMBAG, President TIM KELLY, Chair Accounts receivable 910,809 1,227,509

ANN STRAATMAN, Vice Chair CARRIE FRALEIGH DE SCHUTTER, VP Michelle Campbell Investments 4,181,241 4,057,109 Prepaid expenses 195,354 100,185 Bill Boyce Tom Baker Jan Delaney Advances to joint venture 142,090 180,671 John Finan Patricia Graham Bill Grieve 10,377,812 10,883,721 John Leitch Warren Hoy Ken Levy Investment in joint venture 2,737,766 2,383,531 Dave Little Councillor Arielle Kayabaga Denny Lang Capital assets 46,402,159 47,782,801 Dianne McComb Stacy King Al Marr Councillor Josh Morgan Betty Ann MacKinnon Don McCallum Intangible assets 272,500 397,500 David Ross Sharon Peters Karl Nevin $ 59,790,237 $ 61,447,553 Peter Whatmore Rhonda Persichilli John White Tim Kelly, Past Chair Councillor Mohamed Salih Gary Williams Liabilities and Net Assets Don McCallum,2nd Past Chair Brian Slaughter Current liabilities: Mary Anne Zwambag, President of the Warden Kurtis Smith SOLICITOR Accounts payable and accrued liabilities $ 2,261,098 $ 3,464,974 Programming Council Eric Thomson Tim McCullough, Harrison Pensa Deferred revenue 189,280 212,826 County Councillor Alison Warwick J. Robert Cowan, Q.C. (Honourary Solicitor) Current portion of long-term debt 1,290,755 1,290,762 LIFE MEMBERS Joe Dales, Board of Governors Chair 3,741,133 4,968,562 Dorinda Greenway Long-term debt 5,340,976 6,631,725 Bernie MacDonald Deferred capital contributions 431,632 146,711 Pauline Richards Employee future benefits 1,594,985 1,443,606 Net assets: Unrestricted 48,681,511 48,256,949

$ 59,790,237 $ 61,447,553 4 November 26, 2019 Page 5 of 14 WESTERN FAIR ASSOCIATION C 7 - CW Info Consolidated Statement of Cash Flows WESTERN FAIR ASSOCIATION

Consolidated Statement of Operations Year ended June 30, 2019, with comparative information for 2018

2019 2018 Year ended June 30, 2019, with comparative information for 2018

Cash provided by (used in): 2019 2018 Operating activities: Financials Revenue: Excess of revenue over expenses $ 526,728 $ 258,186 Facilities rentals $ 8,436,790 $ 8,430,191 Adjustments for: Racing 3,729,288 3,793,948 Amortization of capital assets 2,658,176 2,604,159 Association shows 2,560,257 3,472,630 Amortization of intangible assets 125,000 125,000 Fall exhibition 1,664,322 1,788,986 Amortization of deferred capital contributions (14,390) (14,389) Change in employee future benefits liability 56,933 160,363

16,390,657 17,485,755 Equity in earnings of joint venture (361,955) (306,142) Changes in non-cash operating working capital (967,310) (106,570)

Expenses: 2,023,182 2,720,607 General, administrative and operating 13,876,812 15,219,896 Amortization of capital and intangible assets 2,783,176 2,729,159 Financing activities: Interest on long-term debt 299,007 297,355 Repayments of long-term debt (1,290,756) (1,314,993) 16,958,995 18,246,410 Investing activities: Deficiency of revenue over expenses before the undernoted (568,338) (760,655) Purchase of capital assets (1,277,534) (245,761)

Financials Acquisition of business - (300,000) Other income 493,576 477,516 Contributions received for capital purposes 299,311 - Proceeds from repayment of notes receivable - 93,047 Purchase of investments, net (124,132) (98,597) Management fees from joint venture 239,535 235,183 (1,102,355) (551,311) Equity in earnings of joint venture 361,955 306,142 Increase (decrease) in cash (369,929) 854,303

Excess of revenue over expenses $ 526,728 $ 258,186 Cash, beginning of year 5,318,247 4,463,944

Cash, end of year $ 4,948,318 $ 5,318,247 November 26, 2019 Page 6 of 14 Western Fair C 7 - CW Info

Memories continued to be made by the Association’s signature event. The beloved wagon rides returned to the fair, taking people back and forth to the Agriplex. Double Sunday derbies offered demolition fans their fix of adrenaline and crashes on both weekends of the fair. Super Sunday was introduced offering discounted gate admission paired with a ride all day midway deal on the final day of the fair. Bandaloni the one-man Band and Racing Pigs and Ducks provided some nostalgic attraction entertainment having been missed by fairgoers. The Progress Building was not in use in anticipation of master site plan changes to support gaming, with shopping vendors moved to a large tented pavilion off of the main midway. Agriculture education and attractions were divided between the outdoor pastured areas in the park displaying various breeds of sheep, cattle, alpacas, rabbits and more, while the Agriplex showcased Rodeo, Dairy, Swine, Goats, 4-H and a new family fun area called the Bouncing Barnyard. Weather was decent throughout the fair except for the first Sunday and Monday, when cold, damp weather prevailed.

9 November 26, 2019 Page 7 of 14 People C 7 - CW Info

Casual for a Cause is a campaign that encourages employees to dress casually every Friday in exchange for making a donation (minimum of $2 per week through payroll deduction) to the registered charity of their choice. Western Fair Association then matches each employee’s charity of choice contribution to a maximum of $100.00 per annum. In 2018 WFA employees were able to raise $4,290 in employee contributions, in addition to Western Fair District’s corporate contribution of $3,100, raising a total of $7,390. We supported 22 different charities including; Animalert, Autism Ontario Services, Canadian Breast Cancer Foundation, Canadian Cancer Society, Canadian Diabetes Association, Canadian Red Cross, Children’s Health Foundation, Heart & Stroke Foundation, Kidsport London, London Food Bank, London Humane Society, Make Children Better Now Association, Foundation, Ontario Standardbred Adoption Society, Parkinson Society Canada, St. Joseph’s Health Care Foundation, St. Joseph’s Hospice, Thames Valley Children’s Centre, The Terry Fox Foundation, Women’s Rural Resource Centre and Youth Opportunities Unlimited. Since 2009, our volunteers have manned the coat checks at different shows with the Wine & Food Show being the biggest. From a small coat check in the Progress Building to now using 1/3 of the Agriplex arena, it has proven to be one of the busiest and lively stops for our patrons. Our coat check volunteers also team up with other organizations which have included: PAWS, Keeping Kids Warm, Big Brothers Big Sisters, Cadets, Children’s Burn Unit, Hutton House, Animalert, Children’s Health Foundation, Canfix, and the 1st CAV Motorcycle who donated the proceeds to the Veterans Care Craft Program at Parkwood Hospital. Volunteers working together has proven to be a winning combination with over $ 25,000.00 raised for local charities.

11 November 26, 2019 Page 8 of 14 Racing C 7 - CW Info

The Raceway maintained its position as the highest wagering ‘Signature’ racetrack in the province this past season and, outside of Woodbine Mohawk Park, was the highest wagering Standardbred track in the country. The second edition of the Camluck Classic was moved back to it’s traditional Friday night time slot on Friday, May 31st and produced a strong turnout. This resulted in an increase in overall wagering of 34% and an on-site wagering increase of 29% over the previous year when the event was held on a Saturday night. Other high profile events at The Raceway included the 13th Annual Harness the Hope Night in support of Breast Cancer Society of Canada and the 2nd edition of the Veterans’ Classic in celebration of our military. A plan was developed and work began on a complete upgrade of The Raceway’s broadcast production to High Definition along with a newly revamped graphics package. These exciting changes were in place for the start of the Fall 2019 race season.

13 November 26, 2019 Page 9 of 14 Agriculture C 7 - CW Info

Western Fair Association is committed to agricultural awareness through much of its programming and events. In the past fiscal year, the District’s agricultural owned and operated events included the annual Fair’s agri-food school tour program, welcoming over 1200 students, the London Farm Show which enjoyed a second successful year in its expansion into the BMO Centre, The National Poultry Show, the largest feather industry event in the country, and Agri- Food week - an educational event for grades 7 and 8 with the support of local commodity groups and Growing Chefs Ontario. The Association’s corporate sponsorship of Growing Chefs - School Food Education Program reached 6,000 students this past year and since the partnership began in 2016, over 14,000 students have received food and agriculture education because of the Association’s investment. The Market at Western Fair District is also under the Association’s agricultural mandate and operates weekends year-round to provide access to local food vendors, as well as artisans. Horse racing is another important part of WFA’s deep agricultural roots. We have had a long-serving commitment to racing as one of the Province’s largest agricultural sectors and London and surrounding communities represent a major hub for Standardbred horse breeding in Canada.

15 November 26, 2019 Page 10 of 14 Sports Centre C 7 - CW Info

The Western Fair Sports Centre remains as one of the busiest and most popular indoor ice venues in Southwestern Ontario. This past year, more than 16,000 ice hours were used, including 21 minor hockey tournaments and 11 Adult/ Charity events. Our adult leagues attracted 82 teams and there were 587 participants who took part in the Youth Summer League. An additional 350 students from eight schools participated in our Learn To Skate Program. The Sports Centre had two major highlights this year as it played host to national and international events. First, we welcomed Hockey Canada and the 2018 Canadian Tire Para Hockey Cup in December, which featured some of the best Para Hockey players in the world from Canada, the United States and Korea. Thousands were in attendance throughout the week, supporting some great local talent such as Tyler McGregor and James Dunn. The tournament ended with a thrilling final between USA and Canada, coming down to the final seconds where the States edged out the home team 5-4. Then in March 2018, we joined in the JUNO festivities taking place across the city as we hosted the JUNO Cup. Celebrities from the music and sporting worlds graced the ice, and with it came a buzz of excitement, fabulous fan-fare and a packed house well before puck drop. The presentation of the game was unlike our standard hockey events and rose the bar for the in-game experience we can offer. Looking ahead, the Sports Centre is gearing up to again welcome the curling world and the 2020 Continental Cup to the District in January 2020. The 2019-20 season is already underway, and we continue to support our local organizations and welcome visitors from across the province, the country and the globe!

17 November 26, 2019 Page 11 of 14 The Market C 7 - CW Info

The Market once again won “Best Market” in London thanks to our valued customers who love and support the venue and its unique offerings and atmosphere. Western Fair District celebrated its first year anniversary of operating the Market, by launching a second shopping day (Sunday) in October of 2018, to compliment its traditional Saturday market day. Weekend hours provide flexibility for customers to access unique food and artisan shopping on two floors, from 8-3 Saturday, and Sunday 10-2. The move to a weekend market was a game changer for many. Two-days was not for everyone, but many existing vendors and some new ones joined and embraced the change and opportunity, refreshing the Market’s offerings and customer base. Much needed capital improvements were completed this year to support vendors and customers. Bright, new, eye- catching signage with refreshed branding was made prominent above the main entrance. Major marketing dollars were spent to get the word out about the new weekend Market. Modern, accessible, washrooms were completed, as was cold storage space to support multi-day fresh fruit and vegetable vendors. Sunday attendance growth has been slow and steady over the first year and WFD is proud of our vendor partners and the unique offerings and customer focus they provide for The Market experience.

19 November 26, 2019 Page 12 of 14 Recognition Awards C 7 - CW Info

The annual Western Fair has long been recognized as one of the best of its size in North America and this past year took home several awards from the International Association of Fairs and Expositions’ (IAFE) annual convention. For fairs with an attendance of 100,001-250,000, The Western Fair took home the 2018 Awards of Excellence for Agricultural exhibitor events, awards, participation incentives or retention program as well as Agricultural program area beautification. IAFE also awarded the Western Fair with first place for Best Promotional Advertising (Outdoor Division). The Market at Western Fair District was named the Best Flea Market/Farmer’s Market by Best of London while Festival and Events Ontario (FEO) recognized the Western Fair as a top 100 Festival or Event. The Western Fair District’s Agriplex was nominated for the OHRMA People’s Choice Award for best facility during the annual Wine and Food Show.

21 November 26, Honouring2019 Hugh Mitchell Page 13 of 14 C 7 - CW Info

Upon his retirement, the Western Fair Association Access Program for individuals with Special 80-plus year tradition - the London Farm thanks Hugh Mitchell for his countless Needs. He guided the annual fair to Top 100 event Show - to new facilities at the BMO Centre. contributions over the course of what was a status, introduced a Yuk Yuks Comedy Club to These are only a handful of the remarkable career spanning more than three support our entertainment offerings and ushered achievements the organization decades. in the first solar array on the property atop the experienced during his time at the helm of His time as CEO from 2009 to 2019 was full of Sports Centre. the District. numerous contributions including master site Hugh was also one of the driving forces behind Throughout the majority of his career, plan initiatives, innovative business strategies, the Standardbred Alliance which began the rebirth he has dedicated himself to the mission and a rebrand of the organization that helped to of Ontario Racing under a new model as well as and mandate of our large agriculture maintain the District’s competitive edge in his time crafting a 10-year agreement with North American society and has served with integrity and at the helm. Midway Entertainment to provide one of the best distinction. Congratulations Hugh on your Some of the highlights of his tenure included the traveling midways on the continent for our annual long, rewarding career at the District. first Wine and Food Show in 2006, an agreement fair. His team developed a music partnership We wish you and your family health and to support the launch of a Farmer’s Market in - Trackside Country Music Festival - to test the happiness in your retirement. the Confederation Building, and the Community ability of the site to deliver large-scale outdoor music festivals and engineered the of an

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