The Welsh Limited Annual Report 2015

Undeb Rygbi Cymru Cyfyngedig Adroddiad Blynyddol 2015

12:50 The Purpose and Primary Objective of the WRU is to: Promote, foster, encourage, control and improve rugby 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. Contents

Neges y Llywydd / President’s message 2

Chairman’s statement / Datganiad y Cadeirydd 6

Group Chief Executive’s summary / Crynodeb Prif Weithredwr y Gr wˆ p 10

Strategic report 22

Community rugby review 32

Elite rugby review 44

Stadium review 64

Directors’ report 68

Consolidated income statement 72

Consolidated statement of comprehensive income 73

Consolidated and Company balance sheets 74

Consolidated statement of changes in equity 75

Company statement of changes in equity 76

Consolidated statement of cash flows 77

Notes to the financial statements 78

Independent auditors’ report 99

Welsh Rugby Union governance 101

Registered office and advisors 104

Board of Directors 105

Executive Board 111

Obituaries 113

Commercial partners 116

THE LIMITED - ANNUAL REPORT 2015 1 Neges y Llywydd

Dennis Gethin, Llywydd

Ei Mawrhydi’r Frenhines yn cyflwyno baneri i Gatrawd y Cymry Brenhinol yn Stadiwm y Mileniwm

Yn ystod y flwyddyn ddiwethaf mae rhai newidiadau rwy’n hyderus bod ganddo’r gallu a’r penderfyniad i’n sylfaenol wedi’u gwneud i’r modd y caiff rygbi yng harwain yn llwyddiannus. Nghymru ei lywodraethu, sydd wedi’u croesawu gan y Mae Bwrdd Undeb Rygbi Cymru wedi bod drwy’r newid Gr wˆ p ac sy’n dyst i’n parodrwydd i esblygu a datblygu’r mwyaf a welwyd ers i mi gael fy ethol yn Llywydd yn 2007, Undeb gwych hwn. wrth i nifer o gynrychiolwyr ardal newydd a Mae ein cryfder a’n hyder yn dangos bod y Gr wˆ p yn Chyfarwyddwyr newydd a benodwyd yn genedlaethol ddigon beiddgar i ymwneud â’r lefel hon o newid ymgymryd â’u rôl. corfforaethol. Rwy’n rhoi teyrnged am hynny i Brif Efallai mai’r newid mwyaf a welwyd yn ystod y flwyddyn Weithredwr y Gr wˆ p, Roger Lewis, sydd ar fin ymadael a’r oedd cyflwyno dau gyfarwyddwr anweithredol, cyn-Gadeirydd, David Pickering, a fu’n gweithio mor annibynnol, anetholedig newydd i’r Bwrdd, sef Tim Griffin ddiwyd i gyrraedd y nod hwn. Gall y ddau ohonynt fod yn ac Aileen Richards. Aileen yw’r ddynes gyntaf erioed i fod falch tu hwnt o’r hyn y maent wedi’i gyflawni, a does dim yn aelod o’n Bwrdd. Gellir beirniadu llawer o sefydliadau amheuaeth na fydd eu gwaddol anhygoel yn cael ei neu gyrff llywodraethu am ystyried eu dulliau gadarnhau pan edrychir yn ôl ar y cyfnod hwn mewn llywodraethu’n furiau gwarchod i gadw pawb a phopeth hanes. allan, ond mae’r Gr wˆ p wedi profi ei fod yn barod i symud Mae hefyd yn deyrnged wych i allu ein Cadeirydd newydd, gyda’r oes ac esblygu, a bod ganddo’r gallu i wneud hynny. Gareth Davies, sydd wedi derbyn y cyfleoedd a’r heriau ac Rhaid bod hynny’n llesol i’r gêm, ac mae’r Cyfarwyddwyr sydd wedi arwain y gwaith o ddatblygu’r Gr wˆ p â chymaint newydd eisoes yn profi eu gallu i adael eu hôl ar rygbi yng o egni ac ymdeimlad clir o bwrpas. Nghymru mewn dulliau hynod o gadarnhaol. Rydym yn edrych yn ôl ar flwyddyn lle’r ydym wedi penodi Fel Llywydd mae’n fraint i mi allu gweld yn agos sut y mae’r Prif Weithredwr newydd i’r Gr wˆ p, sef Martyn Phillips, ac sefydliad hwn yn gweithio, a gallaf ddweud wrthych yn

2 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Gydag Edward Jones o Ymddiriedolaeth Elusennol Rygbi Cymru hyderus bod y Gr wˆ p mewn sefyllfa wirioneddol dda ar hyn ag a Tony O’Connor a arferai fod yn chwaraewyr o bryd. rhyngwladol. Drwy gydol y flwyddyn mae’r cyfeillgarwch a’r gwmnïaeth Yn ystod y flwyddyn ymddeolodd Edward Jones, rwyf wedi’u profi wrth fynd o gwmpas y clybiau wedi bod ysgrifennydd anrhydeddus Ymddiriedolaeth Elusennol o gymorth mawr i mi gyflawni fy nyletswyddau gyda Rygbi Cymru, ar ôl blynyddoedd o waith diflino ac balchder parhaus. Wrth wireddu addewid y Gr wˆ p i wella’r ymroddiad i’r elusen. Mae ei ymrwymiad i les chwaraewyr modd y mae’n cyfathrebu ac yn trafod â’i aelodau, rwyf rygbi sydd wedi’u hanafu’n ddifrifol a’u teuluoedd yn wedi mwynhau ymweld â’r holl ardaloedd yng Nghymru rhyfeddol, a gall Edward deimlo’n falch ac yn fodlon iawn yng nghwmni Cadeirydd Undeb Rygbi Cymru a Phrif wrth edrych yn ôl ar y gwaith y mae wedi’i gyflawni. Rwy’n Weithredwr y Gr wˆ p. Mae’r adborth, yn ddieithriad, wedi gwybod y bydd ei olynydd, Dr Arun Midha, yn bod yn gadarnhaol ac yn galonogol ac mae’n dangos ysgrifennydd medrus yn ei le, a hoffwn ddymuno pob ymrwymiad gwirioneddol i weithio gyda’n gilydd er lles y llwyddiant iddo yn y rôl bwysig hon. Mae’r gêm. Ymddiriedolaeth yn mynd o nerth i nerth dan nawdd parhaus Dug Caergrawnt, ac mae proffil yr Yn fy rôl fel llefarydd ar ran y Gr wˆ p yng ngemau Ymddiriedolaeth wedi codi’n sylweddol o ganlyniad i’w rhyngwladol ein tîm h yˆn, rhaid i mi ganmol Warren gyfraniad. Gatland a’i dîm hyfforddi, Alan Phillips a’r holl staff sy’n ymwneud â’r agwedd rygbi am y safonau ardderchog y Hoffwn ddiolch i’m cydweithwyr ar y Bwrdd am eu maent yn parhau i’w cynnal. cymorth yn ystod y flwyddyn, ynghyd â’r Tîm Gweithredol a staff y Gr wˆ p – rwy’n gwerthfawrogi’r cymorth hwnnw’n Roedd hefyd yn bleser mawr ymweld â Georgia gyda XV y fawr. Edrychaf ymlaen at ymweld yn ystod y flwyddyn Llywydd a Chlwb Rygbi Crawshay yng nghwmni Llywydd nesaf â chynifer ag sy’n bosibl o’r clybiau sy’n aelodau o’r y Cynulliad, y Fonesig Rosemary Butler. Profodd aelodau’r Undeb, a dymunaf bob llwyddiant a boddhad i chi i gyd garfan eu bod yn llysgenhadon gwych i Gymru, ac roedd yn ystod y tymor rygbi sydd i ddod. y daith yn enghraifft ragorol o’r modd y gall rygbi helpu i feithrin cysylltiadau diplomyddol â gwledydd sydd ymhell Diolch y tu hwnt i ffiniau Cymru. Yn anffodus rydym unwaith eto eleni wedi colli unigolion dylanwadol y gall eu cyfraniadau i fyd rygbi fod yn destun balchder mawr i’w teuluoedd. Cofiwn am y cawr Ray Williams a wnaeth gymaint dros rygbi yng Nghymru a ledled y byd, a chofiwn am ei ymroddiad gydol ei oes i’n Dennis Gethin camp. Yn ogystal bu farw fy nghyfaill personol ac un o’m Llywydd cydchwaraewyr yng Nghaerdydd, Howard Norris, ynghyd Undeb Rygbi Cymru Cyfyngedig

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 3 President’s message

Dennis Gethin, President

WRU President Dennis Gethin at the East District Cup Final

The past year has seen some pivotal changes to the district and nationally appointed Directors taking up their governance of Welsh rugby which have been embraced by respective roles. the Group and are testimony to our willingness to evolve Perhaps the most profound change during the year was the and develop this great Union of ours. introduction of two new non-elected independent non- Our strength and confidence shows that the Group is bold executive directors to the Board in Tim Griffin and Aileen enough to engage in this level of corporate change. For Richards, the first ever woman our Board. Many that I pay tribute to the departing Group Chief Executive, organisations or governing bodies can face criticism for Roger Lewis, and the former Chairman, David Pickering, wearing their cloaks of governance like suits of armour who worked so hard to achieve this goal. Both can be which are never to be pierced but the Group has proved to extremely proud of their achievements and there is no be willing and capable of modernisation and evolution. This doubt that history will confirm their incredible legacy. has to be good for the game and the new Directors are already proving to be capable of making their marks on It is also a great tribute to the capabilities of our new Welsh rugby in extremely positive ways. Chairman, Gareth Davies, who has accepted the opportunities and challenges and guided the development As President, I feel privileged at being able to observe the of the Group with such vigour and clarity of purpose. operational workings of this organisation closely and I can tell you with confidence that the Group is currently in a very We reflect on a year which has seen us name a new Group good place indeed. Chief Executive in Martyn Phillips who I am confident has the ability and determination to lead us successfully. Throughout the year, the friendship and camaraderie I have experienced around the clubs has been a great support in The Board of the WRU has been through its greatest helping me fulfil my duties with continuing pride. In change since I became President in 2007 with several new

4 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Former Welsh internationals at the Millennium Stadium honouring the Group’s pledge to improve communication Jones, after years of selfless work and devotion to the and dialogue with its membership I have enjoyed visiting charity. His commitment to the welfare of the severely all the Districts in Wales with the WRU Chairman and injured rugby players and their families is truly remarkable Group Chief Executive. Without exception, the feedback and Edward can reflect on his work with great pride and has been positive and encouraging and indicates a real satisfaction. I know his successor, Dr Arun Midha, will prove commitment to work together for the good of the game. an able replacement and I wish him every success in this important role. The Trust is prospering from the continued In my role as a spokesperson for the Group at our senior patronage of The Duke of Cambridge and the profile of the international matches I must compliment Trust has risen significantly as a result of his involvement. and his coaching team, Alan Phillips and all the rugby staff for the excellent standards they continue to uphold. I thank my colleagues on the Board for their help and support during the year together with the Executive and It was also a great pleasure to visit Georgia with the staff of the Group, which is greatly appreciated. I Crawshays WRU President’s XV in the company of our forward to visiting as many of our member clubs as possible Presiding Officer, Dame Rosemary in the year ahead and wish you all a most successful and Butler. The squad proved to be great ambassadors for Wales rewarding time in the forthcoming season of rugby. and the tour was a fine example of how rugby can help build diplomatic bonds with nations far beyond our Thank you borders. Sadly the year was again marked with the loss of some significant individuals whose contributions to our game can be a source of pride for their families. There was the great Ray Williams who did so much not only for Welsh rugby but for the world game during a life devoted to our sport. My own personal friend and former teammate, Howard Norris, also passed away as did other internationals of yesteryear in Ian Jones and Tony O’Connor. Dennis Gethin President It was a year in which the Welsh Rugby Charitable Trust The Welsh Rugby Union Limited marked the retirement of its honorary secretary, Edward

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 5 Chairman’s statement

Gareth Davies, Chairman

Talking to the media

I want to thank everyone who works so hard within Welsh In tandem with that aim, I have spent the past year rugby because my first year as Chairman has reinforced my renewing my contacts with friends in the grassroots game belief that we truly have the people who can ensure we and forging new relationships with some great people at continue to grow and develop as the national sport the clubs I have visited. of Wales. This is a fundamental element of my role as Chairman I am delighted with the progress which has been made because I must understand the community game and the through the last financial year as it places the Group in a only way I can do that effectively is to meet the people strong position to look forward with confidence to who make grassroots rugby work. So any invitations will the future. be most welcome! An enormous amount of work has been completed during At an operational level the changes within the year have a year in which we have embraced change and started to been profound and meaningful. My appointment as build a sense of unity across the game at all levels in Wales Chairman was a key indicator of the desire for change and – but there is still much to be done. there have been some significant developments through the year. We have achieved a strong set of financial results for the year and our re-investments into the game continue at I was delighted to welcome on board our new Group Chief levels which offer realistic prospects of sustainability and Executive, Martyn Phillips, who arrives with an impressive growth for the game. CV and a determination to take the evolution of Welsh rugby on to its next step. It has also been a year in which I have had the opportunity to strengthen our relationships with key stakeholders, both I thank Roger Lewis for the nine years of devoted effort he inside and outside Wales, and I can assure you that will has given to the game in Wales and the improvements he remain my focus. has forged, including the appointment of Warren Gatland as Coach.

6 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Roger leaves us at the dawn of a new era and the past This is inherent in all my work as Chairman and I hope twelve months have also seen new non-executive many of you will have noted as much. Take, for instance, appointments at Board level with fresh faces at district and the introduction of a monthly newsletter to clubs. It’s our national level and two new non-elected independent non- game and our Union. We all have a right to know what is executive directors, including our first woman, with happening. impressive business backgrounds. Throughout the year the relationship with the Regions has I have revised the way the Board carries out its agenda been refreshingly close. Of course we have challenges based work and I now ensure that each director brings to ahead but we will face them together and build on the the table and shares regular information straight from the great work all four have done for our game. clubs they represent. Internally the new Desso-hybrid pitch is delivering on its I am pleased that the Group has again delivered a strong promise and the eight games plus the profit before tax, non-controlling interests and exceptional announcement of the 2017 Champions League football items of £2.9m against a turnover of £64.2m and it is final are testimony to the continued success of our great particularly pleasing that we have been able to reinvest in stadium. a Facilities Grant of £650,000 which goes directly to the We can also look forward to some great rugby with the clubs. Rugby World Cup spectacle giving way to the prospect of With this significant reinvestment in mind I want to remind a Wales tour of New Zealand next summer exactly one year you all that within the grassroots game we remain before the Lions arrive there. determined to stop the payment of players. Many clubs The new TV deal for coverage of the RBS 6 Nations as a have already embraced this concept and the campaign to partnership between the BBC and ITV shows that we are make non-payment to players a fundamental element of determined to negotiate fair and hard for our worth. the community game will continue. We cannot achieve any of these things in isolation and I On a particularly positive level we must also recognise the want to particularly thank our commercial partners and impact of the proposed changes introduced to increase our fully acknowledge the support we receive from the Welsh School Club Hub Officer compliment to more than 80. local authorities, Welsh Government and Parliament. Early feedback of this strategy shows that it is having a clear and measurably positive effect on participation levels I also want to sincerely thank everyone involved in our amongst youngsters. Remember, they are our future! game, both on and off the field, from the grassroots to the top of the elite game along with my colleagues on the Internally, we have reviewed and finalised a broader new Board, the Executive and the staff of the Group . strategic plan, which will create the roadmap the Group will work to in the months and years ahead. We must be I thank you all for your efforts and wish you the best for organised and we have to be clear about our aims and the season ahead. ambitions. All of Welsh rugby must own and embrace our Thank you future strategy and vision. To support these aims, we have refinanced our loan arrangements with Barclays Bank to increase the flexibility between our income, levels of debt and reinvestment potential. Across the year we have closely reviewed our National League structures, announced new plans for a revamped Principality Premiership Division and reviewed our Gareth Davies competition structure thoroughly. All this work has Chairman involved the relevant stakeholders from within Welsh The Welsh Rugby Union Limited rugby because I am determined to deliver on my promise to improve communication across our game.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 7 Datganiad y Cadeirydd

Gareth Davies, Cadeirydd

Hoffwn ddiolch i bawb sy’n gweithio mor galed yn y byd Mae Roger yn ein gadael ar ddechrau cyfnod newydd yn rygbi yng Nghymru, oherwydd mae fy mlwyddyn gyntaf ein hanes, ac yn ystod y 12 mis diwethaf rydym hefyd wedi fel Cadeirydd wedi atgyfnerthu fy nghred bod gennym y penodi aelodau anweithredol newydd i’r Bwrdd. Mae bobl a all sicrhau ein bod yn dal i dyfu a datblygu fel camp gennym gynrychiolwyr ardal a chynrychiolwyr cenedlaethol genedlaethol Cymru. sy’n wynebau newydd ac rydym wedi penodi dau gyfarwyddwr anweithredol, annibynnol, anetholedig Rwyf wrth fy modd â’r cynnydd sydd wedi’i wneud yn newydd â chefndir rhagorol ym myd busnes, sy’n cynnwys ystod y flwyddyn ariannol ddiwethaf, oherwydd mae’n y ddynes gyntaf erioed i fod yn aelod o’r Bwrdd. golygu bod y Gr wˆ p mewn sefyllfa gref i allu edrych ymlaen yn hyderus i’r dyfodol. Rwyf wedi adolygu’r modd y mae’r Bwrdd yn cyflawni gwaith sy’n gysylltiedig â’i agenda, ac erbyn hyn rwy’n Mae llawer iawn o waith wedi’i gyflawni yn ystod sicrhau bod pob cyfarwyddwr yn cyflwyno ac yn rhannu blwyddyn lle’r ydym wedi croesawu newidiadau ac wedi gwybodaeth yn rheolaidd ac yn syth o’r clybiau y maent dechrau meithrin ymdeimlad o undod ar draws y gamp ar yn eu cynrychioli. bob lefel yng Nghymru – ond mae llawer o waith i’w wneud o hyd. Rwy’n falch bod y Gr wˆ p unwaith yn rhagor wedi sicrhau gwerth £2.9 miliwn o elw cyn treth, cyfrannau lleiafrifol ac Rydym wedi sicrhau canlyniadau ariannol cadarn ar gyfer eitemau eithriadol yn erbyn trosiant o £64.2 miliwn, ac y flwyddyn ac rydym yn parhau i ailfuddsoddi yn y gamp mae’n arbennig o galonogol ein bod wedi gallu ar wahanol lefelau, sy’n cynnig gobaith realistig am ailfuddsoddi mewn Grant Cyfleusterau gwerth £650,000 gynaliadwyedd a thwf ar gyfer y gêm. sy’n mynd yn uniongyrchol i’r clybiau. Mae hefyd wedi bod yn flwyddyn lle’r wyf wedi cael y cyfle Gan gadw’r ailfuddsoddi sylweddol hwn mewn cof, i gryfhau ein perthynas â rhanddeiliaid allweddol, yng hoffwn eich atgoffa i gyd ein bod yn parhau’n benderfynol Nghymru a thu hwnt, a gallaf eich sicrhau y byddaf yn o atal chwaraewyr rhag cael eu talu yn y gamp ar lawr parhau i ganolbwyntio ar hynny. gwlad. Mae llawer o glybiau eisoes wedi croesawu’r Ochr yn ochr â’r nod hwnnw, rwyf wedi treulio’r flwyddyn cysyniad hwn, a byddwn yn parhau â’r ymgyrch i sicrhau ddiwethaf yn adfer fy nghysylltiadau â chyfeillion yn y bod peidio â thalu chwaraewyr yn elfen hanfodol o rygbi gamp ar lawr gwlad ac yn creu perthynas newydd â phobl yn y gymuned. wych yn y clybiau yr wyf wedi ymweld â nhw. Ar nodyn cadarnhaol tu hwnt, rhaid hefyd i ni gydnabod Mae hynny’n elfen hanfodol o’m rôl fel Cadeirydd effaith y newidiadau a gyflwynwyd i gynyddu ein criw o oherwydd rhaid i mi ddeall y gêm yn y gymuned, a’r unig Swyddogion Canolfannau Clybiau Ysgol i dros 80. Mae ffordd y gallaf wneud hynny’n effeithiol yw drwy gyfarfod adborth cynnar ynghylch y strategaeth hon yn dangos ei â’r bobl sy’n gwneud i rygbi weithio ar lawr gwlad. bod yn cael effaith amlwg a chadarnhaol iawn ar lefelau Byddwn yn falch iawn o dderbyn unrhyw wahoddiadau, cyfranogiad ymysg pobl ifanc. Cofiwch – nhw yw ein felly! dyfodol! Ar lefel weithredol, mae’r newidiadau a wnaed yn ystod y Yn fewnol, rydym wedi adolygu a chwblhau cynllun flwyddyn wedi bod yn rhai pellgyrhaeddol ac ystyrlon. strategol newydd ehangach, sef y map y bydd y Gr wˆ p yn Roedd fy mhenodi i’n Gadeirydd yn arwydd clir o’r awydd ei ddilyn yn ystod y misoedd a’r blynyddoedd sydd i ddod. i newid, a gwelwyd datblygiadau o bwys yn ystod y Rhaid i ni fod yn drefnus a bod yn glir ynghylch ein flwyddyn. hamcanion a’n huchelgeisiau. Rhaid i bawb sy’n perthyn i’r byd rygbi yng Nghymru deimlo perchnogaeth ar ein Roeddwn yn falch iawn o groesawu Prif Weithredwr strategaeth a’n gweledigaeth ar gyfer y dyfodol a’u newydd y Gr wˆ p, Martyn Phillips, i’r tîm. Mae ganddo CV croesawu. rhagorol ac mae’n benderfynol o symud rygbi yng Nghymru yn ei flaen i’r cam nesaf yn ei ddatblygiad. Er mwyn hybu’r amcanion hyn, rydym wedi ailariannu ein trefniadau benthyca gyda Banc Barclays er mwyn sicrhau Hoffwn ddiolch i Roger Lewis am ei naw mlynedd o mwy o hyblygrwydd rhwng ein hincwm, ein lefelau o ymdrech ddiflino dros y gamp yng Nghymru ac am y ddyled a’n potensial o ran ailfuddsoddi. gwelliannau y mae wedi’u sicrhau, sy’n cynnwys penodi Warren Gatland yn Brif Hyfforddwr.

8 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Calum Haggett, Capten tîm dan 18 Cymru, sydd ar ei ffordd i Brifysgol Caergrawnt

Yn ystod y flwyddyn rydym wedi adolygu strwythurau ein Mae’r cytundeb teledu newydd ar gyfer gemau Cynghreiriau Cenedlaethol yn fanwl, wedi cyhoeddi Pencampwriaeth y 6 Gwlad RBS, sy’n bartneriaeth rhwng cynlluniau newydd ar gyfer ailwampio Uwch-gynghrair y y BBC ac ITV, yn dangos ein bod yn benderfynol o Principality, ac wedi adolygu strwythur ein cystadlaethau’n fargeinio’n galed ac yn deg am ein gwerth. ofalus. Mae rhanddeiliaid perthnasol o’r byd rygbi yng Ni allwn gyflawni’r un o’r pethau hyn ar ein pen ein Nghymru wedi bod yn rhan o’r holl waith hwn oherwydd hunain, ac rwyf am ddiolch yn benodol i’n partneriaid rwy’n benderfynol o wireddu fy addewid, sef gwella masnachol ac am gydnabod yn llwyr y cymorth yr ydym yn cyfathrebu ar draws y gamp. ei gael gan awdurdodau lleol Cymru, Llywodraeth Cymru Mae hynny’n elfen greiddiol o’m holl waith fel Cadeirydd, a’r . ac rwy’n gobeithio y bydd llawer ohonoch eisoes wedi Hoffwn ddiolch o waelod calon hefyd i bawb sy’n sylwi ar hynny. Er enghraifft, rydym wedi cyflwyno llythyr ymwneud â’n camp, ar y cae ac oddi arno, o rygbi ar lawr newyddion misol i’n clybiau. Mae’r gamp, a’r Undeb hefyd, gwlad i frig y gêm elît, a diolch hefyd i’m cyd-aelodau ar y yn eiddo i bob un ohonom. Mae gan bob un ohonom yr Bwrdd, y Tîm Gweithredol a staff y Gr wˆ p. hawl i wybod beth sy’n digwydd. Hoffwn ddiolch i bob un ohonoch am eich ymdrechion a Mae’r berthynas â’r Rhanbarthau drwy gydol y flwyddyn dymuno’n dda i chi ar gyfer y tymor sydd i ddod. wedi bod yn berthynas agos, ac mae hynny i’w groesawu. Mae heriau’n ein hwynebu wrth gwrs, ond byddwn yn eu Diolch hwynebu gyda’n gilydd ac yn adeiladu ar y gwaith gwych y mae’r pedwar Rhanbarth wedi’i wneud dros ein camp. Mae’r cae Desso-hybrid newydd yn cyflawni’r hyn a addawyd, ac mae’r wyth gêm yng Nghwpan Rygbi’r Byd a’r cyhoeddiad y bydd rownd derfynol cystadleuaeth bêl- droed Cynghrair y Pencampwyr 2017 yn dod i’n stadiwm gwych yn dyst i’w lwyddiant parhaus.

Gallwn hefyd edrych ymlaen at rygbi gwych, oherwydd ar Gareth Davies ôl mwynhau gwledd Cwpan Rygbi’r Byd bydd Cymru yn Cadeirydd teithio i Seland Newydd yr haf nesaf, union flwyddyn cyn Undeb Rygbi Cymru Cyfyngedig i’r Llewod lanio yno.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 9 Group Chief Executive’s summary

Roger Lewis, Group Chief Executive

New pitch unveiling

This is my ninth and final Annual Report as the Group On joining the Group in October 2006 I said that our Chief Executive of the WRU. The primary objective of the ambition was to create long term sustainability for all of WRU is to promote, foster, encourage, control and improve our activities both on and off the field, underpinned by the game of throughout Wales. sound financial management. The most important sentiment I have to share from the We have produced a record set of financial results this year past financial year is my best wishes to the whole of Welsh and they are a tribute to everyone working throughout rugby for the future of rugby in Wales. I wish good luck to Welsh rugby. The financial performance provides the everyone involved in the game and, in particular, our Group with the ability to deliver on its primary objective as volunteers, supporters and partners, and my thanks go to set out above and as detailed later in this report. you all. Over the course of the coming pages we review in great detail all of our activities in community rugby, elite rugby and the Millennium Stadium along with our financial and operational performances for the past year.

10 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Financial highlights

Turnover from 2006/07 - 2014/15 Repayable net bank debt from 2006/07 - 2014/15 70 40 39.3 64.2 60 35 50 30 43.8 40 25 m m ‘ ‘

£ £ 30 20 20 15 14.2 10 10 0 5 2006/7 Year 2014/15 2006/7 Year 2014/15 • We have increased our turnover this year to a record high • We have reduced our repayable net bank debt this year of £64.2m, up by £5.7m (10%) on last year and an to a record low of £14.2m, down by 55% since 2006/07 increase of 47% since 2006/07. • The net bank interest payable this year was £1.3m, reduced by 55%, from the £2.9m paid in 2006/07.

EBITDA (Earnings Before Interest, Tax, Depreciation, Allocations to our Affiliated Organisations and Amortisation) from 2006/07 – 2014/15 from 2006/07 – 2014/15 31 30.3 24 22.6 29 22 27 20 25 18 m m ‘ ‘ 23

£ £ 21.1 16 21 14.9 29 14 17 12 15 10 2006/7 Year 2014/15 2006/7 Year 2014/15 • We have increased our EBITDA this year to a record high • We have allocated this year a record £22.6m to our of £30.3m, up 11% on last year and an increase of 44% Affiliated Organisations, a 6% average annual increase since 2006/07. since 2006/07 and a total increase of 51% since 2006/07. • We have invested this year £6.8m into Community Rugby, a 6% average annual increase since 2006/07 and a total increase of 48% since 2006/07. • We have allocated this year a record £17.2m into Regional Rugby, a 7% average annual increase since 2006/07 and a total increase of 56% since 2006/07 (£11m) • This amount includes £9.1m of direct investment from the WRU into Regional Rugby and £8.1m from the competitions in which the Regions play. • We have invested this year £4.3m into Elite Rugby, a 12% average annual increase since 2006/07 and a total increase of 95% since 2006/07 • In addition to the above we have also invested some £3.8m in capital projects at the National Centre of Excellence since 2006/07, including a cryotherapy chamber and a high altitude chamber. • We have invested a record £3.2m in capital projects into the Millennium Stadium this year • This is the greatest amount spent on the Stadium since 2017 Champions League Final announcement 1999.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 11 Group Chief Executive’s summary

The headlines for the Group in 2014/15 are as with the Group and other sports governing bodies. The follows: Group initiative to provide free legal advice to clubs through the Law School also continued Community Rugby to deliver benefits. Through the year 237 clubs had signed Community rugby is fundamental to the development of up to receive new websites developed through Group Welsh Rugby, it facilitates the ability for all players to funding. participate in the National Sport and the Group ’s • St John Cymru commercial activities provide the Group with the means to pursue its primary objective. Through the St John Cymru Wales Rugby Emergency Aid courses a total of more than 2,000 first aiders at rugby • Schools clubs were trained through Group funding. We sincerely Following a comprehensive rugby review, 43 School Club thank St John Cymru for all that they do for rugby in Hubs were established, which sees the Group directly Wales. funding schools appointed officers focused on rugby • Concussion teaching skills. As a result, across the year there was a 30% increase in school teams, 66% more youngsters playing New concussion protocols were developed and distributed rugby, a 20% increase in club membership and more than to all member clubs based on the Recognise and Remove a 1,416% increase in girls’ fixtures. It was decided to concept which ensures anyone with symptoms is taken off increase the number of officers to more than 80 by the field of play or training ground. Medical advice must September 2015. then be sought before individuals can return to contact activity. Extra safeguards were also introduced around the • Club Support video playback technology available to Wales’ team A Facilities Grant of £650,000 was made available for medical staff at home and away senior international investment in the season ahead. Workshops were set up games. to help clubs decide on projects and plan any newly • Safeguarding funded improvements. This Facilities Grant followed one of £500,000 for last year. The Club Operations Team also The development of safeguarding across the year was helped organise NatWest RugbyForce workshops to recognised with the Group being awarded Level Three of improve club business planning and delivery, MyWRU was the National Safeguarding Standards Awards through the further developed, and a range of volunteer training took NSPCC. place. Funding via to introduce new artificial • Coach and match officials development sports pitches across Wales was also agreed in partnership The coach education department and match officials department aligned the pathway for both Level 1 referees and coaches. Through training schemes across the year the Group now has 2,500 licensed referees who officiate junior rugby through to senior rugby. • National Skills Coaches Three National Skills Coaches were appointed to work with international pathway players at U20 and U18 level aligning their work with the senior national coaching team. The three new appointees also liaise fully with the School Club Hub officers at the community level. • Apprenticeships A scheme was announced to appoint up to sixteen rugby apprentices, funded through the Royal Foundation, who will learn a range of skills associated to the game. This pilot With the American Ambassador scheme will then be considered for expansion.

12 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 With the Chief Executive of Admiral in the Wales changing room

• Women’s Rugby Parc Eirias facility in Colwyn Bay. This ensures that all Wales’ U20 Six Nations home international games are A new WRU National Women’s Rugby Manager was played at Parc Eirias and it remains the headquarters of the appointed to spearhead the development of all levels of representative RGC 1404 team currently playing in the the womens’ and girls’ game in Wales. A full review of the Championship Division. This agreement is integral to the current structure was completed and new initiatives led to Group ’s plans to continue to develop rugby in measurable increases in women’s rugby activity across the and to increase interest and participation for players, year. I continued to Chair the RBS Six Nations Women's supporters and volunteers. Committee this year. Elite Rugby • Colleges League Elite rugby is crucial to the development of Welsh Rugby, The U18 Wednesday league continued to thrive with the it provides players with the pinnacle to aspire to and the Group and S4C broadcast partnership helping to deliver Group ’s commercial activities provide the Group with the growth in this level of U18 rugby. S4C plan to increase means to pursue its primary objective. coverage in the season ahead. • The Principality Premiership • Youth Rugby A review of the Principality Premiership Division concluded For the first time, three knock out competitions ran that the league should be expanded to a 16 team format throughout the season allowing teams of every level the from season 2016/17. The review by a Competitions chance to play at the Millennium Stadium. Structure Working Group straddled the season and also • Regional Age Grade Rugby concluded that the should in future involve Regional Premiership Select XVs from now on. A Regional Age Grade Rugby continued to develop as a Premier Challenge Cup is to be introduced as a crucial component of the player pathway system with the development format and will be played during weekends inter-Regional competition again proving a fertile ground when British and Irish Cup fixtures are also scheduled. for player development. The competition produced more than 200 tries. • Regional Rugby • SSE SWALEC National Leagues A new six year Rugby Services Agreement (“RSA”) with the four Welsh Regions was signed in August 2014. The There was a full review of the newly introduced SSE Group has guaranteed over £60m of direct funding to the SWALEC National Leagues and with minor amendments four Regions, in addition to them receiving all of the the structure was confirmed for the season ahead. associated income generated from the competitions in • North Wales which they play. In return the Regions have agreed to The continued development of North Wales as a deliver a range of rugby services to the Group . The RSA development region was enhanced with the recognises the Regions ambitions to be four independent announcement of an extended five year agreement with and separate businesses and is a detailed operational and Conwy County Borough Council covering activity at the strategic roadmap for the professional game in Wales. At

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 13 Group Chief Executive’s summary

• Wales National Team A victory over South Africa in the Autumn was a landmark for Wales which signalled their ability to compete and win against the top southern hemisphere sides. In the following RBS Six Nations a defeat against in the very first game proved to be the only loss. Preparation for the Rugby World Cup dominated the start of the new financial year with training camps confirmed for Switzerland, Qatar and North Wales across the summer. The preparation was enhanced with the use of the cryotherapy and altitude chambers now installed and in use at the WRU National Centre of Excellence. The age and experience of the current squad bodes well for even the Alun signs a National Dual Contract 2019 Rugby World Cup with Head Coach Warren Gatland also contracted until 2019 ensuring continuity on and off the heart of this agreement are National Dual Contracts the field. and so far twelve players have been contracted. This Millennium Stadium ground breaking initiative encourages certain players to The Millennium Stadium is majority owned and operated continue to play their rugby in Wales for one of the four by the Group and it received the greatest investment this Regions. year since it was opened in 1999. The new multi-million • National Age Grade Teams pound Desso pitch, irrigation system and underground A newly aligned coaching team took charge of the Wales heating was installed at the Millennium Stadium and it U20 and U18 squads under the management of a greatly enhanced the playing surface for games after its coaching coordinator and featuring the new National Skills introduction in the Autumn of 2014. Following two Coaches. There continued to be close alignment with the concerts by One Direction at the Stadium utilising the new senior national squad which assisted the development of Terraplas plastic cover, the pitch was again in excellent succession planning. A highlight for the U20 team was the condition for the new financial year in time for the 2015 victory over England although this was tempered by the RWC summer warm up internationals and will be for the disappointment of defeats to Scotland and France. eight RWC matches in September and October. We sincerely thank the Welsh Government for their • International Women’s Rugby considerable support in helping us improve our Stadium. Wales Women followed up their eighth place finish in the Our plans for developing the land to the east of the Rugby World Cup with a victory over England at the start Stadium (Westgate Plaza) are now well advanced and our of their 2015 Six Nations. Although they finished the commercial ambitions for the Stadium are well developed. campaign in fifth position five new caps were introduced. Major future events for the Stadium are well in hand, Two of the new caps were identified through a Talent including the UEFA Champions League Final in 2017. Identification process and were fast tracked into the elite Group Activities women’s pathway structure. • Governance Review • Wales Sevens The culmination of a two year governance review led to The HSBC Sevens World Series proved a challenging important changes. Two new non-elected independent environment although Wales received promising starts to non-executive Directors with business experience at the the campaigns in Australia and Dubai. In the penultimate highest international levels were appointed to the Board. round in , Wales won the Bowl competition to The appointments included the first female Director ever reward their hard work. The quality of the Wales coaching appointed to the Board. There were also changes to the team was recognised with the appointment of Gareth tenure of Board Directors with a twelve year term of office Williams as Assistant Coach to the GB Sevens squad and now in place. Richie Pugh achieving a similar status with the GB Women.

14 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 At Mold RFC

• Policy We are deeply conscious of the challenges facing the community game and so we have invested significantly A new Welsh Language Policy was introduced by the into schools, clubs and community rugby staff this past Group along with a new Welsh language option on year. This is fundamental to Welsh Rugby and this work www.wru.wales. The Group continues to liaise with the must continue. Welsh Language Commissioner over the evolution of its bilingual activity. Moreover we have secured a six year agreement with the four Welsh Regions and together we have created National • Commercial and Broadcast Agreements Dual Contracts for our elite players. Throughout the year a series of important commercial and I stand down as GCEO of the Group on 31 October 2015, sponsorship partnerships were renewed or launched. The after nine years in post. I thank all of the teams of people Group was closely involved with negotiations which in the Group for what they have achieved in this year and culminated in a new joint BBC and ITV agreement to cover in recent years. I thank all of the volunteers, players, the RBS Six Nations tournament on free to air television coaches, officials and administrators at our member clubs from 2015/16 and up to and including 2021. Autumn Test for their dedication and hard work, week in and week out broadcast coverage through the BBC was secured to 2018 across Wales. I thank our sponsors, commercial and media in the previous year. partners and I thank local and national government for Within the Group, significant partnership renewals were their support. To the Executive Board of the Group I extend confirmed including Admiral’s sponsorship of the Wales my special thanks for their support, patience, and sheer senior international jersey (including the womens’ team brilliance. I thank my friends on the Board and in particular jersey), Gullivers Sports Travel as official travel partner, SSE our President, Dennis Gethin. SWALEC’s extension of their support of the national I wish you all well. leagues and the Principality Building Society’s continued support of the Premiership Division. New commercial Diolch yn fawr iawn, partnerships were struck with Vitality Health and Life Insurance and Sinclair Group Mercedes Benz. Conclusion Together we have achieved a record set of financial results this year which in turn has enabled us to invest record sums into the game at all levels, along with considerable record investment into the Stadium. The Group is financially sound, with a very modest and manageable debt level and with strong financial visibility firmly based Roger Lewis upon long term agreements put in place with all of our Group Chief Executive major broadcasters and principal commercial partners. All The Welsh Rugby Union Limited this serves the WRU well to deliver on its primary objective.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 15 Crynodeb Prif Weithredwr y Gr wˆ p

Roger Lewis, Prif Weithredwr y Gr wˆ p

Cwpan yn Stadiwm y Mileniwm

Dyma fy nawfed Adroddiad Blynyddol, a’m hadroddiad Wrth ymuno â’r Gr wˆ p ym mis Hydref 2006 dywedais mai olaf, fel Prif Weithredwr Gr wˆ p Undeb Rygbi Cymru. Prif ein huchelgais oedd sicrhau cynaliadwyedd hirdymor i’n amcan yr Undeb yw hybu, meithrin, annog, rheoli a gwella holl weithgareddau ar y cae ac oddi arno, ar sail rheolaeth rygbi ledled Cymru. ariannol dda. Y peth pwysicaf yr hoffwn ei wneud yn dilyn y flwyddyn Rydym wedi cynhyrchu’r canlyniadau ariannol gorau erioed ariannol ddiwethaf yw dymuno’r gorau i bawb yn y byd eleni, ac maent yn deyrnged i bawb sy’n gweithio ar bob rygbi yng Nghymru ac ar gyfer dyfodol y gamp yng lefel yn y byd rygbi yng Nghymru. Mae’r perfformiad Nghymru. Hoffwn ddymuno pob hwyl i bawb sy’n ariannol yn galluogi’r Gr wˆ p i gyflawni ei brif amcan a ymwneud â’r gamp, yn enwedig ein gwirfoddolwyr, ein nodwyd uchod ac y manylir arno’n nes ymlaen yn yr cefnogwyr a’n partneriaid, a hoffwn ddiolch i bob un adroddiad hwn. ohonoch. Ar y tudalennau nesaf byddwn yn adolygu’n fanwl iawn ein holl weithgareddau o safbwynt rygbi yn y gymuned, rygbi elît a Stadiwm y Mileniwm ynghyd â’n perfformiadau ariannol a gweithredol dros y flwyddyn ddiwethaf.

16 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Uchafbwyntiau ariannol Trosiant rhwng 2006/07 a 2014/15 Dyled net ad-daladwy i’r banc rhwng 2006/07 a 2014/15 70 64.2 40 39.3 60 35 50 43.8 30 40 m

‘ 25

m ‘ £

30

£ 20 20 15 14.2 10 10 0 5 2006/7 Blwyddyn 2014/15 2006/7 Blwyddyn 2014/15 • Rydym wedi cynyddu ein trosiant eleni i’r ffigur uchaf • Rydym wedi lleihau ein dyled net ad-daladwy i’r banc erioed, sef £64.2 miliwn, sydd £5.7 miliwn (10%) yn eleni i’r ffigur isaf erioed, sef £14.2 miliwn, sy’n ostyngiad uwch na’r llynedd ac sy’n gynnydd o 47% ers 2006/07. o 55% ers 2006/07. • Y llog net a oedd yn daladwy i’r banc eleni oedd £1.3 miliwn, sydd 68% yn llai na’r £2.9 miliwn a dalwyd yn 2006/07. Enillion cyn llog, treth, dibrisiant ac Dyraniadau i’n sefydliadau cyswllt amorteiddio rhwng 2006/07 a 2014/15 rhwng 2006/07 a 2014/15 31 30.3 24 22.6 29 22 27 20 25 18 m m ‘ ‘ 23

£ £ 21.1 16 21 14.9 29 14 17 12 15 10 2006/7 Blwyddyn 2014/15 2006/7 Blwyddyn 2014/15 • Rydym wedi cynyddu ein henillion cyn llog, treth, • Rydym wedi dyrannu £22.6 miliwn i’n sefydliadau cyswllt dibrisiant ac amorteiddio eleni i’r ffigur uchaf erioed, sef eleni, sef y ffigur uchaf erioed, sy’n gynnydd blynyddol o £30.3 miliwn, sydd 11% yn uwch na’r llynedd ac sy’n 6% ar gyfartaledd ers 2006/07 ac sy’n gynnydd o 51% gynnydd o 44% ers 2006/07. ers 2006/07. • Rydym wedi buddsoddi £6.8 miliwn mewn rygbi yn y gymuned eleni, sy’n gynnydd blynyddol o 6% ar gyfartaledd ers 2006/07 ac sy’n gynnydd o 48% ers 2006/07. • Rydym wedi dyrannu £17.2 miliwn i rygbi rhanbarthol eleni, sef y ffigur uchaf erioed, sy’n gynnydd blynyddol o 7% ar gyfartaledd ers 2006/07 ac sy’n gynnydd o 56% ers 2006/07 (£11 miliwn). • Mae’r swm hwn yn cynnwys £9.1 miliwn o fuddsoddiad uniongyrchol gan Undeb Rygbi Cymru mewn rygbi rhanbarthol ac £8.1 miliwn o’r cystadlaethau y mae’r rhanbarthau yn chwarae ynddynt. • Rydym wedi buddsoddi £4.3 miliwn mewn rygbi elît eleni, sy’n gynnydd blynyddol o 12% ar gyfartaledd ers 2006/07 ac sy’n gynnydd o 95% ers 2006/07. • Yn ogystal â’r swm uchod, rydym hefyd wedi buddsoddi tua £3.8 miliwn mewn prosiectau cyfalaf yn y Ganolfan Ragoriaeth Genedlaethol ers 2006/07, sy’n cynnwys siambr cryotherapi a siambr efelychu uchder. • Rydym wedi buddsoddi £3.2 miliwn, sef y ffigur uchaf erioed, mewn prosiectau cyfalaf yn Stadiwm y Mileniwm eleni. • Dyma’r swm mwyaf sydd wedi’i wario ar y Stadiwm ers Scott Williams yn llofnodi Contract Deuol Cenedlaethol 1999.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 17 Crynodeb Prif Weithredwr y Gr wˆ p

Dyma’r penawdau ar gyfer y Gr ŵp yn ystod 2014/15: • Cyfergyd Rygbi yn y gymuned Cafodd protocolau newydd ar gyfer cyfergyd eu datblygu a’u rhannu â’r holl glybiau perthnasol. Mae’r protocolau’n Mae rygbi yn y gymuned yn hanfodol i’r gwaith o seiliedig ar y cysyniad o Adnabod ac Anfon o’r Cae, sy’n ddatblygu rygbi yng Nghymru, mae’n galluogi pob sicrhau bod unrhyw rai sydd â symptomau cyfergyd yn cael chwaraewr i gymryd rhan yn y gamp genedlaethol, ac mae eu hanfon o’r cae chwarae neu’r cae hyfforddi. Yna, rhaid gweithgareddau masnachol y Gr wˆ p yn galluogi’r Gr wˆ p i cael cyngor meddygol cyn y gall unigolion ailafael mewn geisio cyflawni ei brif amcan. gweithgarwch sy’n golygu cyswllt corfforol. Cafodd • Ysgolion trefniadau diogelu ychwanegol eu cyflwyno hefyd o ran y Yn dilyn adolygiad cynhwysfawr o rygbi, sefydlwyd 43 o dechnoleg ailchwarae fideo sydd ar gael i staff meddygol Ganolfannau Clybiau Ysgol lle mae’r Gr wˆ p yn ariannu’n tîm Cymru yng ngemau rhyngwladol cartref ac oddi cartref uniongyrchol swyddogion sy’n cael eu penodi gan ysgolion y tîm h yˆn. ac sy’n canolbwyntio ar sgiliau addysgu rygbi. O ganlyniad, • Diogelu yn ystod y flwyddyn, gwelwyd cynnydd o 30% yn nifer y Cafodd y camau a gymerwyd i ddatblygu gwaith diogelu timau ysgol, gwelwyd 66% yn rhagor o blant a phobl ifanc ar hyd y flwyddyn eu cydnabod wrth i’r Gr wˆ p gyrraedd yn chwarae rygbi, gwelwyd cynnydd o 20% mewn Lefel Tri Dyfarniadau’r Safonau Diogelu Cenedlaethol aelodaeth clybiau a sicrhawyd cynnydd o fwy na 1,416% drwy’r NSPCC. yn nifer y gemau rygbi i ferched. Penderfynwyd cynyddu nifer y swyddogion i dros 80 erbyn mis Medi 2015. • Datblygu hyfforddwyr a swyddogion gemau • Cymorth i glybiau Bu’r adran addysgu hyfforddwyr a’r adran swyddogion gemau yn cysoni’r llwybr ar gyfer hyfforddwyr a dyfarnwyr Darparwyd Grant Cyfleusterau gwerth £650,000 ar gyfer Lefel 1. Drwy gynlluniau hyfforddi ar hyd y flwyddyn, mae buddsoddi yn y tymor sydd o’n blaen. Sefydlwyd gweithdai gan y Gr wˆ p 2,500 o ddyfarnwyr trwyddedig erbyn hyn sy’n er mwyn helpu clybiau i benderfynu ar brosiectau a dyfarnu gemau rygbi o’r lefel iau i’r lefel h yˆn. chynllunio unrhyw welliannau a ariennir o’r newydd. Roedd y Grant Cyfleusterau hwn yn dilyn grant gwerth • Hyfforddwyr Sgiliau Cenedlaethol £500,000 y llynedd. Yn ogystal, bu’r Tîm Gweithrediadau Penodwyd tri o Hyfforddwyr Sgiliau Cenedlaethol i weithio Clybiau yn helpu i drefnu gweithdai RugbyForce NatWest gyda chwaraewyr sydd ar y llwybr rhyngwladol dan 20 a er mwyn gwella’r modd y mae clybiau’n cynllunio ac yn than 18, a bydd eu gwaith yn cyd-fynd â gwaith tîm cyflawni eu busnes. Cafodd MyWRU ei ddatblygu hyfforddi’r garfan genedlaethol h yˆn. Mae’r tri hyfforddwr ymhellach a chyflwynwyd amrywiaeth o hyfforddiant i newydd yn cadw mewn cysylltiad hefyd â swyddogion y wirfoddolwyr. Cytunwyd hefyd, mewn partneriaeth â’r Canolfannau Clybiau Ysgol ar lefel gymunedol. Gr wˆ p a chyrff llywodraethu campau eraill, bod cyllid ar gael drwy Chwaraeon Cymru i gyflwyno meysydd chwarae • Prentisiaethau artiffisial newydd ar draws Cymru. Yn ogystal, gwelwyd Cyhoeddwyd cynllun i benodi hyd at 16 o brentisiaid rygbi, bod menter y Gr wˆ p i ddarparu cyngor cyfreithiol rhad ac a ariennir drwy’r Sefydliad Brenhinol, a fydd yn dysgu am ddim i glybiau drwy Ysgol y Gyfraith Prifysgol Caerdydd amrywiaeth o sgiliau sy’n gysylltiedig â’r gamp. Yna, yn parhau i esgor ar fanteision. Yn ystod y flwyddyn, roedd byddwn yn ystyried ehangu’r cynllun peilot hwn. 237 o glybiau wedi cofrestru i gael gwefannau newydd a ddatblygir drwy gyllid gan y Gr wˆ p. • Rygbi merched • St John Cymru Penodwyd Rheolwr Rygbi Merched Cenedlaethol newydd ar gyfer Undeb Rygbi Cymru i arwain y gwaith o ddatblygu Drwy gyrsiau Cymorth Cyntaf mewn Argyfwng Rygbi rygbi merched ar gyfer pob oedran ac ar bob lefel yng Cymru, a ddarparwyd gan St John Cymru, cafodd dros Nghymru. Cwblhawyd adolygiad llawn o’r strwythur 2,000 o bobl sy’n gyfrifol am gymorth cyntaf mewn clybiau presennol, ac arweiniodd mentrau newydd at gynnydd rygbi hyfforddiant drwy gyllid gan y Gr wˆ p. Hoffem ddiolch amlwg mewn gweithgarwch ym maes rygbi merched ar o galon i St John Cymru am yr holl waith y mae’r elusen hyd y flwyddyn. Roeddwn yn gadeirydd Pwyllgor Merched yn ei wneud dros rygbi yng Nghymru. Pencampwriaeth y Chwe Gwlad RBS eleni eto.

18 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Annerch ymwelwyr â Stadiwm y Mileniwm

• Cynghrair y colegau Rygbi elît Parhaodd y gynghrair nos Fercher ar gyfer timau dan 18 i Mae rygbi elît yn hollbwysig i’r gwaith o ddatblygu rygbi ffynnu, wrth i’r bartneriaeth ddarlledu rhwng y Gr wˆ p ac yng Nghymru, mae’n rhoi uchafbwynt i’r chwaraewyr S4C helpu i sicrhau twf mewn rygbi dan 18 oed ar y lefel ddyheu amdano, ac mae gweithgareddau masnachol y hon. Mae S4C yn bwriadu darlledu mwy o weithgarwch y Gr wˆ p yn galluogi’r Gr wˆ p i geisio cyflawni ei brif amcan. gynghrair yn ystod y tymor sydd i ddod. • Uwch-gynghrair y Principality • Rygbi ieuenctid Daeth adolygiad o Uwch-gynghrair y Principality i’r casgliad Cynhaliwyd tair cystadleuaeth ddileu drwy gydol y tymor y dylai’r gynghrair gael ei hehangu i gynnwys 16 o dimau am y tro cyntaf, a oedd yn rhoi cyfle i dimau o bob lefel o 2016/17 ymlaen. Cafodd yr adolygiad gan Weithgor chwarae yn Stadiwm y Mileniwm. Strwythur Cystadlaethau ei gynnal yn ystod y tymor, a daeth i’r casgliad hefyd y dylai Cwpan Prydain ac Iwerddon • Rygbi rhanbarthol ar gyfer oedrannau penodol yn y dyfodol gynnwys XV dethol rhanbarthol sy’n chwarae Parhaodd rygbi rhanbarthol ar gyfer oedrannau penodol i yn yr Uwch-gynghrair. Bydd Prif Gwpan Her yn cael ei ddatblygu’n elfen hollbwysig o’r system ar gyfer llwybr gyflwyno fel cystadleuaeth ddatblygu, a bydd y gemau’n chwaraewyr, ac mae’r gystadleuaeth rhwng rhanbarthau cael eu chwarae ar y penwythnosau y bydd gemau Cwpan yn parhau’n dir ffrwythlon ar gyfer datblygu chwaraewyr. Prydain ac Iwerddon yn cael eu cynnal. Cynhyrchodd y gystadleuaeth dros 200 o geisiau. • Rygbi rhanbarthol • Cynghreiriau cenedlaethol SSE SWALEC Cafodd Cytundeb Gwasanaethau Rygbi newydd, a fydd Cynhaliwyd adolygiad llawn o gynghreiriau cenedlaethol yn para chwe blynedd, ei lofnodi gennym ni a’r pedwar newydd SSE SWALEC, ac ar ôl gwneud mân newidiadau rhanbarth Cymreig ym mis Awst 2014. Mae’r Gr wˆ p wedi cafodd y strwythur ei gadarnhau ar gyfer y tymor nesaf. gwarantu dros £60 miliwn o gyllid uniongyrchol i’r pedwar rhanbarth, a byddant hefyd yn cael yr holl incwm • Y gogledd cysylltiedig a gaiff ei gynhyrchu o’r cystadlaethau y maent Cafodd y gwaith parhaus o feithrin y gogledd yn rhanbarth yn chwarae ynddynt. Yn gyfnewid am hynny, mae’r datblygu hwb pan gyhoeddwyd bod y cytundeb â Chyngor rhanbarthau wedi cytuno i ddarparu ystod o wasanaethau Bwrdeistref Sirol Conwy, sy’n ymwneud â’r gweithgarwch rygbi i’r Gr wˆ p. Mae’r Cytundeb Gwasanaethau Rygbi yn yng nghyfleuster Parc Eirias ym Mae Colwyn, wedi’i cydnabod uchelgais y rhanbarthau i fod yn bedwar busnes ymestyn am bum mlynedd. Mae hynny’n sicrhau y bydd ar wahân ac annibynnol, ac mae’n gynllun strategol a holl gemau rhyngwladol cartref Tîm Dan 20 Cymru ym gweithredol manwl ar gyfer y gêm broffesiynol yng Mhencampwriaeth y Chwe Gwlad yn cael eu chwarae ym Nghymru. Mae’r Contractau Deuol Cenedlaethol wrth Mharc Eirias ac y bydd yn parhau’n bencadlys i’r tîm RGC wraidd y cytundeb hwn, ac mae deuddeg o chwaraewyr 1404 cynrychioliadol sydd ar hyn o bryd yn chwarae yn y wedi ymrwymo i gontract o’r fath hyd yn hyn. Mae’r fenter Bencampwriaeth. Mae’r cytundeb hwn yn rhan annatod o arloesol hon yn annog rhai chwaraewyr i barhau i chwarae gynlluniau’r Gr wˆ p ar gyfer parhau i ddatblygu rygbi yn y eu rygbi yng Nghymru dros un o’r pedwar rhanbarth. gogledd a chynyddu diddordeb a chyfranogiad ymhlith chwaraewyr, cefnogwyr a gwirfoddolwyr.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 19 Crynodeb Prif Weithredwr y Gr wˆ p

caled y garfan. Cafodd safon tîm hyfforddi Cymru ei chydnabod pan gafodd Gareth Williams ei benodi’n Hyfforddwr Cynorthwyol ar gyfer carfan Saith Bob Ochr Prydain Fawr a phan roddwyd statws tebyg i Richie Pugh gyda charfan Merched Prydain Fawr. • Tîm Cenedlaethol Cymru Roedd y fuddugoliaeth dros Dde Affrica yn yr hydref yn garreg filltir i Gymru, a oedd yn dangos gallu’r tîm i gystadlu ac ennill yn erbyn timau gorau hemisffer y de. Yn ystod Pencampwriaeth y Chwe Gwlad RBS rai misoedd yn ddiweddarach, y golled yn erbyn Lloegr yn y gêm gyntaf i gyd oedd yr unig gêm i Gymru ei cholli. Y paratoadau ar gyfer Cwpan Rygbi’r Byd a hawliodd ein sylw ar ddechrau’r flwyddyn ariannol newydd wrth i wersylloedd hyfforddi gael eu cadarnhau yn y Swistir, Qatar a gogledd Cymru dros yr haf. Cafodd y gwaith paratoi ei hybu gan y siambr cryotherapi a’r siambr efelychu uchder sydd wedi’u gosod ac sy’n cael eu defnyddio yng Nghanolfan Ragoriaeth Genedlaethol Undeb Rygbi Cymru. Mae oedran a phrofiad y garfan bresennol yn argoeli’n dda ar gyfer Cwpan Rygbi’r Byd 2019 hyd yn oed, ac mae contract y Prif Hyfforddwr yn cyfarch y Tywysog William, Dug Caergrawnt Warren Gatland hefyd wedi’i ymestyn tan 2019, sy’n sicrhau parhad ar y cae ac oddi arno. • Timau cenedlaethol ar gyfer oedrannau penodol Stadiwm y Mileniwm Cymerodd tîm hyfforddi ar ei newydd wedd ofal o garfanau dan 20 a than 18 Cymru, dan reolaeth cydlynydd Y Gr wˆ p sy’n gweithredu Stadiwm y Mileniwm ac sy’n hyfforddi, ac mae’r tîm yn cynnwys yr hyfforddwyr sgiliau berchen ar y rhan fwyaf ohono, ac eleni gwnaed y rhyngwladol newydd. Parhaodd y cysylltiad agos â’r garfan buddsoddiad mwyaf yn y Stadiwm ers iddo gael ei agor yn genedlaethol h yˆn wrth i’r gwaith o gynllunio dilyniant 1999. Cafodd cae chwarae Desso, system ddyfrhau a ystyrlon barhau. Un o uchafbwyntiau’r tîm dan 20 oedd y system wresogi dan ddaear newydd, a gostiodd filiynau o fuddugoliaeth dros Loegr, ond cafodd y dathlu ei bylu gan bunnoedd, eu gosod yn Stadiwm y Mileniwm ac maent siom y colledion yn erbyn yr Alban a Ffrainc. wedi gwneud llawer i wella’r wyneb chwarae ar gyfer gemau, ers iddynt gael eu cyflwyno yn ystod hydref 2014. • Y tîm rygbi merched rhyngwladol Defnyddiwyd y gorchudd plastig Terraplas newydd yn Ar ôl sicrhau’r wythfed safle yng Nghwpan Rygbi’r Byd, ystod dau gyngerdd One Direction yn y Stadiwm, ac ar ôl aeth y Tîm Rygbi Merched ymlaen i guro Lloegr ar y cyngherddau roedd y cae mewn cyflwr gwych unwaith ddechrau Pencampwriaeth y Chwe Gwlad yn 2015. Er i’r eto ar gyfer y flwyddyn ariannol newydd, ac mewn pryd tîm orffen yr ymgyrch yn y pumed safle, enillodd pump o ar gyfer gemau rhyngwladol paratoadol yr haf cyn Cwpan ferched eu capiau cyntaf. Daeth dwy o’r merched hynny i Rygbi’r Byd ac ar gyfer yr wyth gêm Cwpan Rygbi’r Byd a sylw’r tîm hyfforddi drwy broses Adnabod Talent, a gynhelir yno ym mis Medi a mis Hydref. Rydym yn hynod daethant yn rhan o’r strwythur ar gyfer y merched elît drwy o ddiolchgar i Lywodraeth Cymru am ei chymorth lwybr carlam. sylweddol i’n helpu i wella’r Stadiwm. Mae ein cynlluniau ar gyfer datblygu’r tir i’r dwyrain o’r Stadiwm (Westgate • Rygbi Saith Bob Ochr Cymru Plaza) yn mynd rhagddynt yn dda, ac mae ein dyheadau Roedd Cyfres Saith Bob Ochr y Byd HSBC yn heriol i masnachol ar gyfer y Stadiwm wedi datblygu’n dda. Mae Gymru, er i ni gael dechrau addawol yn yr ymgyrchoedd paratoadau ar y gweill ar gyfer digwyddiadau mawr eraill yn Awstralia a Dubai. Yn y cymal olaf ond un yn Glasgow, yn y Stadiwm yn y dyfodol, sy’n cynnwys Rownd Derfynol enillodd Cymru gystadleuaeth y Bowlen yn wobr am waith Cynghrair y Pencampwyr UEFA yn 2017.

20 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Gweithgareddau’r Gr ŵp resymol iawn o ddyled y mae’n hawdd ei rheoli a hyfywedd ariannol cadarn sy’n seiliedig ar gytundebau hirdymor â’n • Adolygiad llywodraethu holl brif ddarlledwyr a’n prif bartneriaid masnachol. Mae’r Cafodd newidiadau pwysig eu cyflwyno yn dilyn adolygiad cyfan yn golygu bod Undeb Rygbi Cymru yn y sefyllfa orau llywodraethu a gynhaliwyd dros gyfnod o ddwy flynedd. i gyflawni ei brif amcan. Cafodd dau gyfarwyddwr anweithredol, annibynnol, Rydym yn hollol ymwybodol o’r heriau sy’n wynebu’r gêm anetholedig newydd sydd â chefndir ym myd busnes ar y yn y gymuned, ac felly rydym wedi buddsoddi’n sylweddol lefelau rhyngwladol uchaf eu penodi’n aelodau o’r Bwrdd. mewn ysgolion, clybiau a staff rygbi yn y gymuned dros y Roedd y cyfarwyddwyr a benodwyd yn cynnwys y ddynes flwyddyn ddiwethaf. Mae rygbi yn y gymuned yn elfen gyntaf erioed i’w phenodi’n un o gyfarwyddwyr y Bwrdd. hanfodol o’r byd rygbi yng Nghymru, a rhaid i’r gwaith Cafodd newidiadau eu gwneud hefyd i gyfnod hwnnw barhau. cyfarwyddwyr ar y Bwrdd, a gallant fod yn y swydd am 12 mlynedd yn awr. At hynny, rydym wedi sicrhau cytundeb chwe blynedd â’r pedwar rhanbarth Cymreig, a gyda’n gilydd rydym wedi • Polisi Iaith Gymraeg creu Contractau Deuol Cenedlaethol i’n chwaraewyr elît. Cyflwynwyd Polisi Iaith Gymraeg newydd gan y Gr wˆ p yn Byddaf yn ymddiswyddo fel Prif Weithredwr y Gr wˆ p ar 31 ogystal ag opsiwn Cymraeg newydd ar www.urc.cymru. Hydref 2015 ar ôl naw mlynedd wrth y llyw. Hoffwn Mae’r Gr wˆ p yn parhau i drafod dulliau o ddatblygu ei ddiolch i’r holl dimau o bobl yn Undeb Rygbi Cymru a weithgarwch dwyieithog â Chomisiynydd y Gymraeg. Stadiwm y Mileniwm am yr hyn y maent wedi’i gyflawni • Cytundebau masnachol a chytundebau darlledu eleni ac yn ystod y blynyddoedd diwethaf. Hoffwn ddiolch i’r holl wirfoddolwyr, chwaraewyr, hyfforddwyr, Drwy gydol y flwyddyn, cafodd cyfres o bartneriaethau swyddogion a gweinyddwyr yn y clybiau ar draws Cymru masnachol a phartneriaethau nawdd pwysig eu sy’n aelodau o’r Undeb am eu hymroddiad a’u gwaith hadnewyddu neu’u lansio. Roedd y Gr wˆ p yn rhan bwysig caled o’r naill wythnos i’r llall. Hoffwn ddiolch i’n noddwyr, o’r trafodaethau a arweiniodd at sicrhau cytundeb newydd ein partneriaid masnachol a’n partneriaid yn y cyfryngau, ar y cyd rhwng y BBC ac ITV i ddarlledu Pencampwriaeth y ac i lywodraethau ar lefel leol a chenedlaethol am eu Chwe Gwlad RBS ar deledu rhad ac am ddim o 2015/16 cefnogaeth. Hoffwn ddiolch yn arbennig i aelodau Bwrdd hyd at ddiwedd tymor 2020/21. Cafodd yr hawl i ddarlledu Gweithredol y Gr wˆ p am eu cefnogaeth, eu hamynedd a’u gemau rhyngwladol cyfres yr hydref drwy’r BBC ei sicrhau hathrylith. Hoffwn ddiolch i’m cyfeillion ar y Bwrdd, ac yn hyd at 2018 y llynedd. enwedig i’n Llywydd, Dennis Gethin. Yn y Gr wˆ p cadarnhawyd bod partneriaethau pwysig yn Hoffwn ddymuno’n dda i bob un ohonoch. cael eu hadnewyddu, a oedd yn cynnwys Admiral yn noddi crys rhyngwladol tîm h yˆn Cymru (gan gynnwys crys tîm y Diolch yn fawr iawn, merched), Gullivers Sports Travel yn bartner teithio swyddogol, SSE SWALEC yn ymestyn ei gefnogaeth i’r cynghreiriau cenedlaethol a Chymdeithas Adeiladu’r Principality yn parhau i gefnogi’r Uwch-gynghrair. Cafodd partneriaethau masnachol newydd eu ffurfio gyda chwmnïau Yswiriant Iechyd a Bywyd Vitality a Sinclair Group Mercedes Benz. Casgliad Gyda’n gilydd rydym wedi sicrhau’r canlyniadau ariannol gorau erioed eleni, sydd yn ei dro wedi ein galluogi i fuddsoddi mwy o arian nag erioed yn y gamp ar bob lefel Roger Lewis a buddsoddi’n sylweddol yn y Stadiwm hefyd. Mae’r Gr wˆ p Prif Swyddog Gweithredol y Gr wˆ p mewn sefyllfa ariannol gadarn ac mae ganddo lefel Undeb Rygbi Cymru Cyfyngedig

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 21 Strategic report Year ended 30 June 2015

Steve Phillips, Group Finance Director

The Group’s business and objectives Group activities The Welsh Rugby Union Limited’s (“Company”) principal activity and primary objective is to promote, foster, encourage, control and improve the game of rugby football throughout Wales. The Company majority owns Millennium Stadium plc (“MS”), WRU National Centre of Excellence Ltd (“WRUNCE”), and WRU Supporters Club Ltd (“WRUSC”). The Company also owns 83.5% of Millennium Stadium Experience Limited (“MSEL”) and, given the control exercised by the Company, MSEL is considered a subsidiary. Collectively, the Company and these subsidiaries are referred to as the Group. Key performance indicators (“KPIs”) The KPIs of the Group are: Participation in rugby • Participation levels in Community Rugby, including women and junior numbers • Development of the elite player talent within Wales An analysis of the Group’s performance against these measures is shown in the ‘Community Rugby Review’ section of this report.

Rugby performance Millennium Stadium Experience Ltd staff at work • Success of the National Squad An analysis of the Group’s performance against these • Performance of the four Welsh Regions measures is shown below. • Performance of the Group’s Age-Grade teams Hospitality – Millennium Experience An analysis of the Group’s performance against these During the year, the hospitality arm of the Group was measures is shown in the ‘Elite Rugby Review’ section of significantly changed. The Company and Compass Group this report. UK & Ireland created a new hospitality company that will Financial performance provide high-quality catering, conferencing and hospitality services for visitors to the home of Welsh rugby. The new • Generation of sufficient earnings before interest, company, known as Millennium Stadium Experience depreciation, amortisation, allocations and Limited (“MSEL”), combines the expertise of the Group’s exceptional items (“EBITDA”), over the medium term, Official Hospitality and the Group's long-serving caterers, to fulfil the Group’s principal activity and primary Levy Restaurants UK, the sports, leisure and hospitality objective division of Compass Group UK & Ireland. MSEL is owned • Number of and attendances at international rugby 83.5% by the Company and 16.5% by Compass Group matches, featuring the National Squad, held at the UK & Ireland. The contribution of MSEL to the Group is Millennium Stadium shown below. • Provision of consistent and affordable levels of Dynamics of the business funding to clubs and affiliated organisations to allow The activities, both operational and financial, of each them to implement long term plans to fulfil their company in the Group are so intrinsically linked that there objectives

22 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 is little merit in assessing individual performance. Whilst Financial Performance they are all separate legal entities and are obliged to Overview of Performance prepare separate financial statements, it is the Group’s performance that is the only meaningful measure. The Group generates income from its international matches (including sponsorship and broadcast rights) and The Group must deliver on its commercial activities to allow incremental revenue from the use of the Stadium. This reinvestment in community rugby, elite rugby and the income meets the operating costs of the Group to allow Stadium. the majority of the surplus to be “invested” in “Welsh Accordingly, the Group’s income generation is paramount Rugby”, as follows: to delivering on its principal activity and primary objective. 2015 2014 The key economic income driver of the Group’s business £’m £’m is the hosting of events at the Stadium; particularly, the Group income 64.2 58.5 hosting of international rugby events featuring the Welsh Business and administration (6.7) (6.1) team and especially a winning Welsh team. The more Hospitality and catering costs (3.6) (1.4) matches that are played, the greater the Group’s revenues Direct costs (11.1) (11.6) and profits that are available for re-investment in Welsh Stadium costs (5.4) (5.0) rugby. The Group welcomed 395,000 (2014: 439,000) rugby spectators to the Stadium for the Dove Men Autumn Surplus 37.4 34.4 Series and the RBS , analysed as follows: As analysed later on page 25, the Group earned some 2015 2015 2014 2014 £64.2m (2014: £58.5m) predominantly from international No. of ‘000 No. of ‘000 rugby matches staged at the Millennium Stadium. These home home matches generated 55% (2014: 55%) of the Group’s matches matches overall income. Autumn Series 4 247 4 226 Commercial income at £9.8m contributes 15% (2014: Six Nations 2 148 3 213 17%) of the Group’s overall income. Hospitality and catering income amounted to £8.2m (2014: £4.2m), 6 395 7 439 contributing 13% (2014: 7%) of overall income.

The average attendance per match was 66,000 (2014: 63,000) and equated to an average of 89% (2014: 85%) when expressed as a measure of capacity attendance. The primary reason that the overall attendance decreased in 2015 was due to playing two home Six Nations matches as compared to the three in 2014 but this was somewhat mitigated by the increase in the Autumn Series attendances. The average ticket income per attendee at matches held at the Millennium Stadium in YE15 was £47 (2014: £41). Commercial income and hospitality income are also critical to the financial performance of the Group. Within reason, the Group’s operational cost base is relatively fixed; albeit there are incremental costs if more Group controlled events are staged. As a consequence, incremental events should mean incremental profits which can be reinvested into the game across all levels. Jonathan Davies in Wales action

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 23 Strategic report Year ended 30 June 2015

The surplus of £37.4m (2014: £34.4m) made by the Group which is invested in “Welsh Rugby” can be analysed as follows: 2015 2014 £’m £’m Operational costs - Elite rugby 4.3 4.4 - Community rugby 2.8 2.7 7.1 7.1

Allocations to affiliates - Regions (Professional) 17.2 17.1 - Clubs (Semi - professional) 1.4 1.1 - Community rugby 4.0 4.3 22.6 22.5

Total investment in “Welsh Rugby” 29.7 29.6

The balance is analysed as follows: Speedway at the Stadium Surplus 37.4 34.4 Total investment in “Welsh Rugby” (29.7) (29.6) Hospitality and catering income now includes the gross 7.7 4.8 value of food and beverage sales, together with conference and banqueting income, as a result of the new MSEL operation. Previously the Group received only a Depreciation and amortisation 3.5 3.2 royalty on these sales. (net of grants) Two other income streams, not generated from staging Exceptional items (see Note 4) (10.0) (1.6) international rugby matches, arise from: Interest costs 1.2 1.2 • Competition income which represents the income Non-controlling interests 0.2 - from competitions including the Champions Cup, the Tax charge 0.7 0.5 Challenge Cup, Heineken Cup and the Guinness Transferred to reserves 12.1 1.5 Pro12 (see Note 2 for further details); and 7.7 4.8 • Other event income which represent events staged at The allocations to the four Regions have continued to the Millennium Stadium apart from rugby matches increase to £17.2m (including the competition income featuring the National Squad - including, in the two referred to above). These allocations in YE15 cover all years indicated above, music concerts, motorsport international player release and provide financial support and the Heineken Cup Final. for the four Regions and reflect the Rugby Services These two forms of income amount to some 15% (2014: Agreement (“RSA”) signed in August 2014. 18%) of the Group’s income. The allocation to the Group’s semi-professional league has The remaining income arises from ancillary activities and increased by 29% from the previous year and stands at various grant sources. £1.4m. The allocations to the Group’s community clubs have decreased by £0.3m to £4.0m; this is due to the fact The business and administration costs represent the costs that whilst general funding was increased there was no of managing the Group; the direct costs represent the repeat of the participation points initiative in 2014. The costs of staging both international rugby matches and total investment in the community game is: other events held at the stadium; the stadium costs represent the costs of managing the stadium other than those directly attributable to events.

24 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 2015 2014 £’m £’m

Operational costs 2.8 2.7 Allocations 4.0 4.3 6.8 7.0

On a pre-exceptional basis, the Group generated an operating profit of £4.2m (2014: £1.7m) from which net debt service of £1.2m (2014: £1.2m) is deducted resulting in a profit before exceptional items, non-controlling interests and tax of £2.9m (2014: £0.5m). Revenues Revenues are analysed as follows: 2015 2014 £’m £’m

Match income 35.4 32.4 in Wales action Competition income 8.1 8.9 Commercial income 9.8 9.8 and third party costs incurred in delivering events at the Hospitality and catering income 8.2 4.2 Millennium Stadium. These costs have decreased by £0.4m Other event income 1.3 1.5 mainly as a result of: Other income 1.4 1.7 64.2 58.5 • a decrease in costs of staging non WRU events, due to the reduced events programme; Match income increased by £3.0m predominantly due to • a decrease in player costs; and higher attendances for the Autumn Series, higher average ticket prices and increased broadcast income, offset by one • a decrease in match costs, resulting from one less less home match in the RBS Six Nations. home Six Nations match in YE15. Commercial income remained constant at £9.8m. Hospitality and catering costs amount to £3.6m (2014: £1.4m). These costs reflect the direct costs of MSEL Other event income decreased to £1.3m; due to the providing all hospitality and catering within the stadium. reduced programme of events compared to YE14. In the prior year the costs related to the provision of Operational costs hospitality packages only, as the catering within the stadium was undertaken by Compass, with the Group As shown in Note 2(b), the Group’s operational costs have receiving a royalty. increased by some 9% to £33.9m. This overall increase is largely due to the inclusion of all hospitality and catering The costs in respect of elite rugby have decreased by 1% costs and increased stadium costs, offset by a decrease in to £4.3m and include managing the age-grade structures, Millennium Stadium event delivery costs, as a result of the the national 7s side, player development, referee costs, reduced programme of non WRU events. National Centre of Excellence and insurance which collectively amount to some 72% (2014: 66%) of the total Business and administration costs have increased by 9% with the balance of the 28% (2014: 34%) comprising staff to £6.7m due mainly to the additional administration costs costs. The reduction in costs during the year is largely due associated with MSEL, including seconded staff, marketing to the transfer of the regional academies. In October 2014 and equipment maintenance. the responsibility for managing four of the regional Direct costs are costs incurred directly in relation to academies was transferred to the respective Region, with attaining revenues and will include all National Squad costs the staff associated with the academies also transferring.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 25 Strategic report Year ended 30 June 2015

2015 2014 £’m £’m Company 28.3 25.7 MSEL 3.1 - WRUNCE 0.2 0.2 WRUSC 0.1 0.1 MS (1.4) 1.3 Group EBITDA 30.3 27.3

Allocations to affiliated organisations (22.6) (22.5) Exceptional items 10.0 1.6 Depreciation and amortisation (3.5) (3.1) (net of grant release) Operating profit 14.2 3.3 Net interest (1.2) (1.2) Profit before tax 13.0 2.1 The new Millennium Stadium Medical Centre Tax (0.7) (0.5) Non-controlling interests (0.2) - The Regions were renumerated for administering the Retained profit 12.1 1.6 academies, which is included within allocations. Net interest expense The costs in respect of community rugby have increased slightly to £2.8m. Community rugby costs include coach The Group’s net interest expense is analysed as follows: development, referee costs, school club hub costs and 2015 2014 insurance which amount to some 48% (2014: 42%) of the £’m £’m total with the balance of the 52% (2014: 58%) comprising staff costs. Bank interest payable & similar charges 0.7 0.8 Stadium costs have increased by some £0.4m to £5.4m Bank charges 0.4 0.3 mainly due to additional investment in the stadium during Interest due to HMRC arising from 0.1 0.1 the year, including refurbishment of the stadium changing settlement of capital allowances rooms and medical facilities. The Group also incurred Total 1.2 1.2 significant costs in undertaking destructive testing on the stadium masts, in line with the stadium’s scheduled The Group has derivative instruments that hedge the maintenance programme. majority of the Group’s debt, as shown in note 15. These instruments ensure that, for a proportion of the Group’s EBITDA and net result debt, the rate of interest paid will be in a defined range. One of the key measures of the Group is the earnings Given that the prevailing LIBOR rates during YE15 were before interest, tax, depreciation, amortisation, exceptional below the floor of the derivative instruments, the £0.7m items and allocation to affiliates (“EBITDA”). This is a key shown under bank interest payable & similar above measure as it is the best proxy for cash generated from the includes some £0.2m (YE14: £0.2m) of interest cost arising Group’s operational activities. This provides the cash to from these derivative instruments. fund the Group’s primary objective. In transitioning to FRS102 the Group has elected to apply The Group’s EBITDA was £30.3m (2014: £27.3m). The ‘hedge accounting’ to its derivative financial instruments, Group’s pre-exceptional profit before tax and non- including the interest rate hedges mentioned above and controlling interests was £2.9m (2014: £0.5m); after foreign exchange hedges. Consequently the fair value exceptional items, a profit before tax and non-controlling movements on these instruments, and any associated tax interests of £12.9m (2014: £2.1m). This can be analysed movement, are not included in the income statement but as follows: are included within other comprehensive income and taken to a hedging reserve.

26 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 The new Terraplas cover for the Millennium Stadium pitch

Exceptional items Cashflow During the current and previous year, the Group incurred The Group’s net cash inflows from operating activities charges that due to their size and nature were considered were as follows: “exceptional”. The Group’s definition of exceptional items 2015 2014 includes the identification of significant non-recurring £’m £’m items that enable the “normal” financial performance of the Group to be better understood. As shown in Note 4, EBITDA 30.3 27.3 the exceptional item in the current year arises from the Allocations to affiliated organisations (22.6) (22.5) release of the Tranche C debt in exchange for one share in Exceptional items - 1.8 MS; this is a non-cash item. Exceptional items in the Working capital movements (1.5) 1.3 previous year comprised legal and professional costs and Net cash inflows from operating activities 6.2 7.9 accelerated depreciation on the old pitch system offset by a business rates rebate in respect of the Millennium From this amount in YE15, the Group paid net interest Stadium. costs of £1.2m, paid £3.5m in respect of fixed assets, received a grant of £1.7m, repaid a grant of £0.1m, paid 2015 2014 dividends to non-controlling interests of £0.2m and paid £’m £’m tax of £2.2m leaving a net cash increase of £0.7m. Release of Tranche C debt 10.0 - Net debt and new arrangements with Barclays Bank plc (as explained above) Net debt, which is defined as bank loans, debenture loans Legal and professional costs - (0.2) less cash balances, as at 30 June 2015 was £51.8m (2014: Accelerated depreciation on pitch system - (0.2) £62.5m). Business rates rebate - 2.0 Total 10.0 1.6 Net bank debt, which is bank loans less cash balances, was £14.2m (2014: £24.9m). Included within the amount in Taxation 2014 was some £10.0m which was repayable only in the event of certain defined events occurring. This £10.0m was During YE15, the Group paid to HM Revenue & Customs released during the year in exchange for one share in MS ("HMRC") the third and final payment in respect of the and is shown in exceptional items in Note 4. historic tax liability that was agreed in YE13. This payment is included in the tax paid amounts on the Group’s cash The net bank debt position, excluding the £10.0m above flow. in 2014, of the Group is as follows:

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 27 Strategic report Year ended 30 June 2015

30 June 2015 30 June 2014 £’m £’m Loans: Term loan (new) 5.0 - Term loan (old) - 10.0 Regions loan 1.3 - Revolving credit facility (“RCF”) 11.0 5.0 17.3 15.0 Cash (3.1) (0.1) Net bank debt 14.2 14.9

The decrease in net bank debt during the year of £0.7m is influenced by the refinancing that occurred during the year and includes a £5.0m reduction in the term loan, a £6.0m increase in the RCF the majority of which is mitigated by the increase in cash balances of £3.0m. In addition, a loan of £1.3m was provided to the Regions during the year to in Wales action further their ambitions in conjunction with the RSA. The loans will be repaid by the Regions in September Further to the refinancing that occurred during the year, 2017, September 2018 and September 2019 in the RCF was £11.0m drawn as at 30 June 2015, £5.0m annual repayments of £1.2m drawn as at 30 June 2014 and had a maximum and minimum draw of £11.0m and £2.2m respectively during 3. The RCF will expire in July 2019 the year. 4. This amount was only repayable under certain As set out in Note 14, as at 30 June 2015, the Group had defined events. It was released during the year in unutilised facilities of £9.0m (2014: £12.5m). exchange for one share in MS as part of the new commercial arrangements and the effect on the In June 2015, the Group refinanced its debt with Barclays profit and loss account is shown in Note 4. Bank PLC in order to provide greater flexibility to the Group. The key changes to the facility arrangements are As part of the banking agreements the Group has to as follows: comply with bank covenants which require the Group to, inter alia, meet certain levels of cashflows and surpluses. Note 30 June 2015 30 June 2014 This enforces normal business practices on the Group, but £’m £’m limits the extent to which the Group can invest, make Facility: allocations to affiliated organisations and access the Term loan (new) 1 5.0 - facilities above. Term loan (old) - 10.0 Regions loan 2 1.3 - These bank covenants are typical of those applying to Revolving credit 3 20.0 17.5 commercial businesses. It is in the Group’s best interests facility (“RCF”) to comply with these covenants as a breach would be a Tranche C 4 - 10.0 default of the loan agreements. The Group’s financial 26.3 37.5 management and controls are structured so that the Group comply with these covenants. Notes: Debentures 1. This facility is repayable in annual instalments of During YE15, further to the offer made in YE13, the Group £1.25m and is due to be fully repaid by July 2019 invited debenture holders of the 410, 420, 430 and 440 2. This facility formed part of the RSA and supports the Series to extend the redemption date of their debenture ambitions of the Regions. There are further draws from 2024 to 2050 at no cost. Invites were extended to available to the Regions in September 2015 and cover some 1,641 debenture holders involving some 3,117 September 2016 of £1.3m and £1.0m respectively. debenture seats.

28 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 The fixed assets of the Group reduced by some £1.7m, reflecting the capital expenditure of £3.5m offset by the depreciation charged in the year of £5.2m. The Group has acquired an intangible asset during the year, in the form of hospitality and catering rights purchased from Compass by MSEL. The rights to provide catering at the stadium were previously held by Compass but these were acquired by MSEL in exchange for shares in MSEL. This asset is being amortised over ten years, being the term of the catering and hospitality licence assigned to MSEL. Operating working capital fluctuates from year to year depending upon the timing of events arising immediately prior to the year end. Commercial activity Vitality partnership announcement Throughout the year a series of important commercial partnerships were renewed or achieved as new Some 179 debenture holders involving some 327 relationships by the Group. The in-house Group activity debenture seats, being approximately 11% of the total, complemented associated commercial activity within accepted this invite resulting in the redemption of some northern hemisphere rugby which was focused on closing £1.4m being extended from 2024 to 2050. In taking the a new contract for the broadcast coverage of the RBS Six offer made in YE13 and YE15 together, some 1,464 Nations tournament from next year. debenture holders involving some 3,010 debenture seats, being approximately 52% of the total, accepted this invite Within the Group, significant partnership renewals were resulting in the redemption of some £12.9m being confirmed including Admiral’s sponsorship of the Wales extended from 2024 to 2050. senior international jersey (including the womens’ team jersey), Gullivers Sports Travel as official travel partner, SSE It is currently anticipated that a similar offer will be SWALEC’s extension of their support of the national extended to the debenture holders that did not accept the leagues and the Principality Building Society’s continued offer in YE13 and YE15 in future years. support of the Premiership Division. Capital expenditure New commercial partnerships were struck with Vitality During YE15, the Group invested in some £3.5m of capital Health and Life Insurance and Sinclair Group Mercedes expenditure; the main categories of investment were as Benz. follows: Welsh Language £’m An important development during the year was the introduction, for the first time, of an official Welsh Catering equipment 0.2 Language Policy by the Group. This was introduced in Desso pitch and associated assets 3.2 conjunction with the launch of a new Welsh language Other capital expenditure 0.1 option on www.wru.wales. The policy defines what areas 3.5 Welsh is already used across the game in Wales and indicates the intention of the Group to the use Balance sheet and reserves of the language where possible in its activities and publications. These developments supplemented a wide The increase in the Group's reserves from £13.2m to range of activity which the Group carries out through the £28.6m arises from the retained profit for the year, the medium of Welsh. movement on the hedging reserve and the movement on the amounts due to non-controlling interests.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 29 Strategic report Year ended 30 June 2015

Squad. The performance of the National Squad will have an impact on the Group’s ability to generate income, particularly over the medium to long term. The Group aims to ensure the success of the National Squad by recruiting a world class coaching and medical team to provide the best possible support to National Squad players, securing additional preparation time for the National Squad players and extensive investment in training facilities, to ensure the National Squad have the best possible environment in which to train. The provision of adequate banking facilities - the Group is financed by a mixture of bank and debenture debt. The continued availability of the bank debt facilities, at competitive rates, is crucial to the future prospects of Sinclair Mercedes Benz partnership announced the Group. The Group’s banking facilities are subject to compliance with financial covenants and non-compliance Principal risks and mitigation strategies of these covenants could significantly impact on the Group’s banking facilities. Ensuring adherence to the As outlined earlier in this report, the Group’s primary financial covenants forms a key part of all policy and objective is to promote, foster, encourage, control and strategy and the Group has a rigorous annual budgeting improve the game of rugby football throughout Wales, process that is focused on covenant compliance. The which is achieved by re-investment in community rugby, Group reviews performance against this budget elite rugby and the stadium. throughout the year in order to identify any potential The Directors’ assessment of the principal risks to delivering risks to compliance. The Group is continually in this objective, their potential affect and the steps taken by communication with its bankers, in respect of the Group’s the Group to mitigate these risks are set out below: activities and performance. Income generation – the ability to generate income The maintenance, physical security and insurance of dictates the level of re-investment the Group is able to its main assets, primarily the Millennium Stadium – make in all forms of rugby. A sustained fall in income the majority of the Group’s income is derived from the would lead to a reduction in financial resource available staging of international matches at the Millennium for re-investment in rugby. Stadium and should the Millennium Stadium not be available to host matches the Group would have to seek Some 83% (2014: 79%) of the Group’s income is alternative venues, which would likely incur significant predominantly derived from staging international matches costs and may not have similar capacity. Loss of or featuring the National Squad and the commercial activities restricted access to the Group’s other assets, such as the associated with the National Squad. Given its significance, National Centre of Excellence (“NCE”), would also have a the mitigation of income risk is therefore focused on match severely detrimental impact on the Group. The training and commercial incomes. facilities at the NCE are amongst the best in the world and The Group seeks to mitigate risk to income by, where National Squad performance may suffer as a result of loss possible, entering into long term arrangements with its of access to these facilities. The Group takes extensive broadcasters, sponsors and other commercial partners. measures to safeguard its assets. The Group employs a The Group’s ticket pricing strategy is focused on team of maintenance and facility management staff who maintaining a balance between the highest possible undertake a thorough preventative maintenance attendances and strong financial returns. The Group’s programme at all of the Group’s facilities. The Group ticket prices are reviewed annually with reference to procures comprehensive insurance policies that, in the market conditions and the opposition faced. event of damage to assets, provide recompense for rectification of damage and for loss of earnings due to As noted above, 83% (2014: 79%) of the Group’s income business interruption. is derived from activities associated with the National

30 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 31 Community rugby review

The rugby department with 43 new School Club Hub officers

The year was marked by important decisions and new During the first year of the scheme, at the 43 School Club initiatives aimed at increasing participation levels in the Hubs, there was a 30% increase in school teams, a 60% community game across Wales. There is a clear focus on rise in the number of games played, 66% more youngsters the grassroots as rugby union at this level in Wales playing rugby, a 20% increase in club membership confronts the combined challenges of a difficult economic and more than a 1,416% increase in the number of climate and the growth in leisure time activity options. girls’ fixtures. One of the most significant changes in recent years was A six month update event for key stakeholders was hosted the introduction of a new strategy which redefines the by the Deputy Minister for Culture, Sport and Tourism, Ken links between the game in schools and member clubs. Skates AM, at the Pierhead Building in Cardiff Bay during April 2015. Following a review, 43 School Club Hubs were created which sees the Group funding schools appointed officers The significant increase in girls’ rugby represented a focused on teaching rugby skills. formidable improvement. Widespread consultation took place during the year into the womens’ and girls’ game These officers engage children in the sport, providing including an online survey and regional forums. playing and leadership opportunities for boys and girls of all levels, fuelling their enthusiasm for sport, and rugby in The Group also commissioned the University of particular, and introducing them to local rugby clubs to Birmingham to research the School Club Hub Programme help the long term sustainability of rugby clubs at the same with a focus on its impact and the motivation it delivers. time. The research will be completed early in the next financial year. During the year the initial appointment of 43 such officers proved a measurable success and the Group announced The increase in the number of these officers will boost the plans to boost the number of personnel to more than 80 number of member clubs supported by the scheme to by the start of the new school year in September 2015. 68% of the total membership. The rugby department introduced the aligned pathway In addition to the new international skills coach positions, ensuring that the club and school game can grow and the rugby department continued to develop to ensure it thrive alongside each other. This has produced a significant provides first class support to the game in Wales and to increase in rugby fixtures, teams and players already, complement the growth in school club hubs, the especially within school club hubs.

32 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Fitzalan High School, one of the new School Club Hubs development officer role evolved into a more strategic found widespread support for the new national leagues rugby coordination role with specific responsibility for and with some small alterations to the format it was working with non-hub clubs and schools and focusing on concluded the new system should now be given time to the retention of players transitioning from junior to youth get properly established in the seasons ahead. and into the senior game. Again during the year the support for clubs was Pupils from hub schools in the Region were emphasised with the announcement of a new Facilities selected to undertake referees courses to enable them to Grant of £650,000 available for investment in the season officiate at junior age-group games. This scheme reflects ahead. It was further announced that workshops were the close relationship between the Group’s coaching and being arranged by the Group to assist clubs decide on match official departments and the School Club Hub what improvement projects to pursue and how to achieve Officers. the best grant aid available. During the year funding was secured from the Royal The pathway structure was enhanced with the continued Foundation of the Duke and Duchess of Cambridge and success of the U18 Wednesday League of eleven teams Prince Harry for a pilot apprenticeship programme. The which is promoted through a television partnership programme will recruit around 16 young people from the between the Group and S4C. It was confirmed during the and Newport Gwent Regions to year that following the success of the output so far, for complete a year-long apprenticeship. The young people season 2015/16 the highlights programme will be screened will learn a host of skills associated with rugby, both on during S4C’s early evening 6pm peak viewing slot. There and off the field, during the programme. was also clear evidence in the analysis undertaken that the brand of rugby played in the league is leading to the The Group was also successful in receiving funding from a rapid development and conditioning of players capable range of partners, including Sport Wales and of winning representative honours at age grade and to support a number of community rugby initiatives. senior level. Complementing these schemes was the introduction of The Group’s commitment to the community game and the the new national league structure which was monitored structures it feeds into were heavily promoted during the through a root and branch review by the Group. The year as the grass roots game remained a priority. appointed working party studied the first year of the new league structure which was fundamentally aimed at The Group also launched a monthly newsletter to the reducing the large distances travelled by some clubs to member clubs, in English and Welsh, specifically aimed at fulfil fixtures under the old league system. The review the community game and its relevance to the structure of

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 33 Community rugby review

Jamie Roberts and Prav Mathema launch nationwide concussion awareness campaign

the game in Wales. Player welfare also featured strongly in the Welsh Government as a significant initiative aimed at initiatives launched and managed during the financial year. tackling the problem of concussive injuries in sport. The Group launched an education programme providing Another welfare based project was the St John Cymru- concussion guidance to all elements of the game in Wales. Wales Rugby Emergency Aid course which took place The guidance protocols were sent to all member clubs plus across the year. In one heart-warming example of how the representative groups and affiliated bodies along with a project can have a wider community impact, a member of range of easy-to-read documents, posters and z-cards. The Colwyn Bay Rugby Club, who had completed the course, full resource is now available online on a new section of was able to assist 62 year old Mel Jones who had suffered www.wru.wales. The full document entitled Concussion, a life threatening heart attack at a roadside petrol station. Recognise and Remove, outlines the signs and symptoms The rugby club volunteer, David Jones, resuscitated the of concussion and encourages all involved in the game to victim with skills learnt on the course. adopt a zero tolerance attitude when dealing with In addition to the Facilities Grant, there was also a suspected cases. The key message is to remove the player continuation of the NatWest RugbyForce Workshops to from a match or training and refer them to a medical help club volunteers learn more about how to run the off practitioner who will decide when they are capable of the field business of Welsh rugby at amateur club level. returning to the game. The information was supported by

34 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 WRU mascot, Scorch in the community

Another significant initiative in the community game was to promote unity throughout the governing body. Regular the re-affirmation of the campaign aimed at stopping engagement took place with the President, Chairman and National League clubs from paying players. All clubs had Group Chief Executive attending District meetings and club to repeat their declaration that constitutionally they were representatives taking part in working party and review not paying players if they wished to continue receiving groups tasked with specific projects related to the game funding and other aid from the Group. A small number of in Wales. clubs suspected of continuing the practice are subject to The Group launched a new anti-doping campaign during ongoing investigation. the year to raise awareness of the need for players at all The Group remained aware of its need to utilise its status levels to ensure they remain within the anti-doping rules within communities across Wales by continuing to work and regulations, and of the particular need to take on projects which take advantage of the interest in the responsibility for checking all medications or supplements sport of rugby to promote other activities. One example they may be thinking of taking against the prohibited lists, during the year was the use of the Scorch Dragon brand a link to which can be found on the new anti-doping as a tool to help improve literacy. The imagery is used section of www.wru.wales. within schools to promote the game through a range of Away from the structured leagues, the Group continued projects. One key initiative was the partnership with the to use alternative forms of rugby to widen the appeal of Into-Film charity to engage young people in a competition, the game for male and female players of all ages and which saw them creating films about rugby through the abilities, and to adapt to modern lifestyles. Tag Rugby, use of Scorch imagery. Touch Rugby, Beach Rugby, Atomic Touch and Throughout the year there was an emphasis on greater other truncated forms of the game are just some of the engagement and communication with the member clubs methods used.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 35 Community rugby review

The Club operations manual was received as a useful tool by many clubs with production of the next annual update already planned. Safeguarding The Group made significant strides in terms of safeguarding in the last twelve months. This was recognised during the National Safeguarding Standards assessment process, which was conducted by the NSPCC. The Group were awarded Level Three of the National Safeguarding Standards in April 2015. This is the highest achievement that can be attained in safeguarding in . The work that has been done in supporting Club Safeguarding Officers (“CSO”) through the CSO induction process, alongside the now well established Case Management investigation procedures, were positively commented on during the assessment process. The new Safeguarding Children and Adults at Risk Policy, published in May 2015, was also well received as the policy has been shaped, based on feedback from member clubs over the last two years. The policy, which has also been endorsed by the NSPCC, now includes increased practical guidance on topics such as social media, concussion and anti-bullying, and will hopefully assist CSOs in providing a safe and positive environment in Welsh rugby. The WRU club operations team provide funding advice to clubs Funding Club Operations A new Club Funding Coordinator was appointed to the Club Operations Team in January 2015 to provide Support for clubs continued to grow with the recruitment additional support to Clubs and administer the of additional Club Operations Advisors in volunteering Facilities Grant. and funding. The additional £650,000 allocated for Facilities Grant By the end of the year, 237 clubs had signed up to the club funding in the year included the introduction of a new website scheme. There was ongoing development of the Pitch Improvement Fund to assist clubs in developing fit for MyWRU online rugby administration system and the club purpose grassed playing surfaces. The Club Operations audit progressed as a tool for helping administrate the Team proactively supported more than 30 Clubs to identify award of development grants, ticket distribution and the and develop facility improvement projects across Wales free Gilbert allocations. and Local Funding Workshops were undertaken during the Club Operations staff continued the programme of year. These were aimed at advising clubs on how to building stakeholder relationships with Business Wales and prepare potential applications to the Facilities Grant and the to provide business advice external funding. Some 120 clubs signed up to attend. and guidance. The All Wales Artificial Surfaces Collaboration Programme The availability of the Cardiff Law school pro bono legal is now up and running with the Group working with service was ongoing through the year offering free legal , the FAW Trust and Sport Wales to provide advice to clubs. This was organised through the Group’s improved artificial playing surfaces across Wales. Legal Department in partnership with Cardiff University, Discussions commenced with key project partners to whose supervised students deliver the service. deliver strategically placed artificial surface facilities to maximise participation in all three sports.

36 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 WRU Community Coach and Referee Conference

Incorporation of Member Clubs The Group also re-structured the delivery of the Level 1 referees’ course making it far more practical and student During the year, the Group attended various District friendly. Throughout the year some 567 people attended Meetings to promote to member clubs the benefits of the course with a further 211 attending the new joint incorporation. The Group will fund this incorporation and Coach/Referee course. The Group now has some 2,500 the Group remains strongly of the view that member clubs licensed referees who officiate junior rugby through to should incorporate. senior rugby. The Group appointed referees to some 7,000 Coach Development and Match Officials fixtures at all levels during the year. The match officials department began working far more The academy referee structure continued to flourish with closely with the coach education department in aligning a number of referees selected for appointments outside of the pathway for both Level 1 referees and coaches. Both Wales as part of the exchange programme with other departments created a new pathway referee award that Unions thereby strengthening the development process allows individuals to referee from U13 down. This is Cath Pritchard, a Level 2 referee from (South delivered in conjunction with the new Level 1 children’s Gower RFC), became the first Welsh female referee to award. officiate at the Millennium Stadium when she refereed the Development and recruitment of referees, without whom U18 girls’ East v West Wales game and Dylan Llyr Jones, a the game would not function, remains a high priority. promising young referee from North Wales, refereed the Welsh Youth Cup final.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 37 Community rugby review

• structured season with minis to U15s moving to a spring/summer sport • working with key partners to support the growth of the game, for example working with Welsh Universities to introduce a University Development league, to attract and retain new starters in the game, and the Urdd to deliver a new primary schools girls only Tag Rugby competition • new U18s Club League will run in 2015/16 for the first time • new approach to development of mini and junior rugby with the introduction of strategically located cluster rugby clubs to develop growth in a sustained way • extended regional programme to develop and foster talent • Touch Rugby will become a big focus to engage more people in rugby to suit modern lifestyles and create a strong recreational offer of the game • raising the profile of women’s and girls rugby, maximising Women’s rugby awards evening role models in the sport and developing associated marketing methods. A clear priority will be to ensure Women’s Rugby positive messaging and a culture change in the game. During the year there was a significant change within the Women and Girls match reports Women’s game with the appointment of Caroline Spanton as the new National Women’s Rugby Manager . A clear Skewen proved they were the strongest womens club strategy was developed following widespread consultation team in Wales by backing up their Premier League throughout this sector. A clear vision was created to championship win by winning the WRU Womens Cup and provide new pathways and opportunities to effectively securing the League and Cup double. engage large numbers of girls and women with rugby. Skewen won the Premiership by just one point from This led to growth with new teams setting up and more Whitland. Skewen finished the campaign on 49 points, schools offering girls rugby than ever before. A bold vision with Whitland on 48. Llandaff North were in third place has been created to provide new pathways and with 33 points. Skewen also left with the silverware after opportunities to effectively engage large numbers of girls a 31-12 triumph against Falcons in the third and women into the game. This vision is to ‘make rugby annual Women’s National finals day staged the norm for women and girls to be involved at all levels’. at . The consultations that have taken place, including club The day comprised four senior women’s club finals and, visits, an online survey and open forums across Wales, will for the first, time a girls U18s final. In the Girls U18s Final, result in a clear direction for the development of the game Cardiff Quins won 54-3 against Wattstown while in the moving forwards; key focus areas include: Womens Vase Final, which is a senior ladies game, Harlequins were 19-10 winners over Wattstown. • a new women and girls player pathway with an effective competition structure to support the development In the Womens Bowl Final, lost to Haverfordwest 17-10 while in the WRU Womens Plate Final, Pencoed • introduction of girls only rugby from U9s all the way defeated Seven Sisters 26-19. through to senior rugby Haverfordwest claimed the Bowl with a 17-8 win against Ynysybwl.

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Regional Age Grade U18 Championship

Pos Team Pl WD L PF PA Diff TF TA TB LB Pts

1 Blues 8602215 129 86 29 18 4129

2 Ospreys 8602170 133 37 22 20 2026

3 8404181 125 56 29 15 4121

4 Dragons 8404181 155 26 24 19 3019

5 RGC 1404 800898 303 (205) 15 47 21 3

Ospreys win the WRU Under 18 regional championship

Regional Age Grade series of highs and lows. Head Coach Steffan James was patient with his young side, giving many fresh from the Cardiff Blues may have finished the season at the top of U16s team their chance at the next age grade up. Results the U18 Regional Championship, but it was the Ospreys weren’t forthcoming in the early stages of the season but who claimed title glory with a convincing 43-14 victory to eventually they recorded win after win until a see the Eyasses (Ospreys U18) crowned champions. comprehensive victory over the Dragons sealed their place The Ospreys overturned an earlier 33-0 defeat to the same in the final against table toppers, the Blues. opposition to turn a season around after going through a

40 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Coleg y Cymoedd retain the WRU Under 18 Wednesday League

U18 Wednesday League after losing just once during the season to close rivals Merthyr. Coleg y Cymoedd claimed the Wednesday League title with a hard fought 13-3 victory over Coleg Sir Gar in an That closely fought match ended in a narrow 29-34 win entertaining final held at the Millennium Stadium on 28 for third placed Merthyr, who are expected to challenge April 2015. strongly next season with the help of a couple of high- profile signings, but Bargoed finished the season in style Youth Cup with a 31-0 victory over fourth placed RGC1404 on the For the first time, three knock-out competitions ran final weekend. throughout the season, allowing teams of every level the Swansea finished in second place in the table, wining 22 chance to compete for glory at the Millennium Stadium in matches and losing just four and joined Bargoed as the April. only teams in the Championship to finish with a 500 plus The Bowl Final was contested between Wattstown and points difference – and both clubs scored over 100 tries Ystradgynlais with the latter achieving a closely fought 13- (127 and 133 respectively), a feat matched only by RGC 10 victory to lift the Bowl. 1404 (125 tries). The Plate went to United who beat Rhydyfelin Their nearest try-scoring rivals were Merthyr who crossed 17-8 and, in the climax of the day and the youth season, 95 times in the season. the honours went to who beat Penallta 28-19 Ystrad Rhondda lifted the SSE SWALEC Plate and to lift the Cup. Ystradgynlais did the double taking the Division Three SSE SWALEC National Leagues West Central C title and winning the SSE SWALEC Bowl competition. Bargoed were crowned champions of the SSE SWALEC Championship, sealing their place at the top of the table

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 41 Community rugby review

SSE SWALEC League Divisional Champions SWALEC Plate Quarter-Finals Championship Bargoed Newcastle Emlyn 18 – 5 Aberystwyth One East Penalta Penlan 5 – 12 Penallta One North Pwilheli Skewen 24 – 0 Nant Conwy Ystrad Rhondda 34 – 0 Loughor One West Newcastle Emlyn Semi-Finals One East Central Beddau Newcastle Emlyn 23 – 15 Penallta One West Central Bonymaen Ystrad Rhondda 26 – 12 Skewen Final Two East Nantyglo Newcastle Emlyn 17 – 25 Ystrad Rhondda Two North SWALEC Bowl

Two West Gowerton Quarter-Finals Cambrian Welfare 13 – 3 Ynysowen Two West Central Pencoed Oakdale 13 – 10 Nantyffyllon Three North Ynysddu 12 – 5 Cwmavon

Three East A Caerleon Ystradgynlais 24 – 3 Caerleon Semi Finals Three East B Abercarn Cambrian Welfare 16 – 10 Oakdale Three East C Hatridge Ynysddu 15 – 15 Ystradgynlais

Three East D Newport Saracens Final Cambrian Welfare 12 – 17 Ystradgynlais Three East Central A Dinas Powys

Three East Central B Aberdare

Three East Central C Ynysowen

Three West Central A Nantymoel

Three West Central B Cwmavon

Three West Central C Ystradgynlais

Three West A Pontyberem

Three West B Fishguard and Goodwick

Three West C Ystradgynlais score

42 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Ystrad Rhondda and Ystradgynlais win the SSE SWALEC Plate and SSE SWALEC Bowl

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 43 Elite rugby review

Wales attack coach takes a session at Crymych

During a year in which the forthcoming Rugby World Cup retirement from international rugby announced by the 2015 was constantly front of mind, a historic Wales victory prop forward Adam Jones, after winning 95 caps, a over South Africa proved to be a significant landmark. notable change in available personnel. The 12-6 win served to confirm that the current Wales Inside the Wales squad, planning for the preparation for squad is indeed a force capable of enhancing its positive the Rugby World Cup was finalised with training camps record in northern hemisphere rugby by beating major confirmed to Qatar, Switzerland and North Wales as well southern hemisphere teams too. as the National Centre of Excellence (“NCE”). Across recent years, Wales have focused on playing the top At the NCE the recently installed cryotherapy and altitude teams more often, very often through a fourth Autumn chambers were constantly utilised to further improve the international, and there has been no doubt that the condition of all Wales international squad members. southern hemisphere sides now know Wales are difficult Off the field for Wales the departure of from opponents in every game. the conditioning team for a role with the NFL in the USA The win over South Africa was a precursor to a RBS 6 was managed through the rapid appointment of the highly Nations campaign in 2015 with Wales achieving a third regarded Paul Stridgeon to take over as Consultant Head place finish via a final 61-20 win over Italy in Rome. of Physical Performance. He now works with Wales during all tournaments combining his Wales role with the position This lessened the disappointment of the solitary loss of Head of Strength and Conditioning with the European against England and the gradual improvement of the Champions, Toulon. Stridgeon had previously worked with Wales performances throughout the tournament became Warren Gatland at Wasps and with the British & Irish Lions. a talking point in the media and by the public. The Wales management team balanced their elite roles Throughout the year the stability in selection of the Wales with a continued involvement with the rest of Welsh rugby team remained a hallmark of the squad, with the

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Dan Biggar signs a National Dual Contract

and this is epitomised by Wales assistant coach, Rob History was also reflected with the award of twelve more Howley, and other members of the National Management President’s Caps to players who represented Wales in Team working with the new international skills coaches matches against Canada and the USA in 1980 and Canada Geraint Lewis, and Jason Strange on a in 1971. These followed the initial award of 25 President’s national skills curriculum which is disseminated to Caps the year before for players who represented Wales in grassroots level via the School Club Hub Officers. matches which were not originally afforded international recognition. The archives are still being studied to The new contractual relationship between the Group and decide whether more President’s Caps should be awarded the four Regions was signed in August 2014 by way of a in future. new six year Rugby Services Agreement (“RSA”). The RSA has now become the new operational roadmap for A landmark collaboration was signed between the Group professional and elite rugby in Wales for the next six years, and Conwy County Borough Council during the year. The including a £60m investment in the Regions over its agreement confirmed that the partnership around sporting duration. A defining element of the RSA was the activity at Parc Eirias in Colwyn Bay will continue for a new introduction of National Dual Contracts (“NDC”) for the five year term. The partnership ensures that all Wales U20 first time as a strategic and funded structure within the Six Nations home international games are played at the elite game in Wales. During the year, twelve players were North Wales venue and RGC 1404 will utilise the ground signed as NDCs which means their contracts are held by for their home games and training. This agreement is the Group while they remain contractually assigned to one integral to the Group’s plan to promote the development of the four Regions. The NDC formula is seen as a means of rugby in North Wales with access to the elite game of ensuring more elite players remain in Wales with ensured for both players and supporters. guarantees over their playing commitments.

46 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 47 Elite rugby review

RBS 6 Nations table

Pos Team Pl WD L PF PA Diff TF TA Pts

1 Ireland 5401119 56 63 838

2 England 5401157 100 57 18 11 8

3 Wales 5401146 93 53 13 88

4 France 5203103 101 2994

5 Italy 5104 62 182 (120) 8 19 2

6 Scotland 5005 73 128 (55) 6 12 0

Professional – International Stadium and set up a final day showpiece with four teams in the reckoning for the RBS 6 Nations title. Wales kicked Wales’ season kicked off with the Dove Men Series, which off super Saturday with a stunning 61-20 victory over Italy. saw the national side record two victories out of their four Their eight tries in Rome set up a dramatic day, which matches. Australia were the first side to the Millennium eventually saw Ireland take the title with a better points Stadium and they came away from Cardiff as 33-28 difference than England and Wales. victors. Wales recorded a 17-13 win over Fiji the following weekend before world champions New Zealand won the In June, Warren Gatland named a 47 man Rugby World third test 34-16. The final Dove Men Test saw Wales take Cup training squad to prepare for the 2015 showpiece the Southern Hemisphere scalp they were looking for, tournament. The squad included 17 players who had beating South Africa 12-6 to lift the . previously represented Wales at the tournament and nine uncapped players. The squad began training at the NCE in The victory against the Springboks, previously referred to, June, preparing them for the training camps in Switzerland was the first in fifteen years and concluded a positive and Qatar. Autumn campaign for Warren Gatland’s side. Results: Ospreys prop Nicky Smith became the latest Wales international during the campaign, making his debut Dove Men Series 2014 against Fiji and earning a second cap against the All Blacks Wales 28 – 33 Australia a week later. Wales 17 – 13 Fiji Wales’ RBS 6 Nations campaign kicked off with the hugely anticipated Friday night fixture against England at the Wales 16 – 34 New Zealand Millennium Stadium. Despite leading the visitors at the Wales 12 – 6 South Africa break, England came out on top to record an opening win 21-16. The following weekend Wales travelled to RBS 6 Nations 2015 Murrayfield and a determined performance was rewarded Wales 16 – 21 England with a 26-23 away victory. Back-to-back away wins were recorded as Wales beat France 20-13 in Paris in their third Scotland 23 – 26 Wales outing. George North (22) became the youngest person in France 13 – 20 Wales history to win 50 test caps during the match (47 for Wales, three for the British & Irish Lions). A resilient and passionate Wales 23 – 16 Ireland display overturned Ireland 23-16 at the Millennium Italy 20 – 61 Wales

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Rhys Webb in action for the Ospreys

The Regions Blues flew the flag for Wales, both reaching the stages. EPCR Champions Cup & Challenge Cup Both sides won five matches from six in the pool stages The Scarlets won two of their six matches in pool 3 of the and were destined to meet each other in a thrilling quarter- Champions Cup (against Ulster 22-13 and final encounter at which the Dragons won 15-3), although the Ospreys finished with more points in 25-21. pool 5 by virtue of their bonus point victory over Treviso (42-7) and a 19-19 draw with Racing Metro 92. Neither Next they faced in a semi-final encounter at side, however, were able to qualify from the pool stages. Murrayfield, but the Scottish side proved too strong for the Dragons and secured their place in the final with a 45-16 However, in the European Challenge Cup, the Newport victory. Gwent Dragons, who topped their group, and the Cardiff

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Guinness PRO12 Pos Team PWDL PF PA Diff TF TA TB LB Pts 1 22 16 15540 360 180 63 33 9075 2 22 15 25581 367 214 68 31 8375 3 Ospreys 22 16 1 5 546 358 188 53 30 6274 4 22 14 2 6 524 372 152 59 34 6369 5 22 11 3 8 483 375 108 54 39 8462 6 Scarlets 22 11 3 8 452 388 64 43 39 4357 7 22 10 1 11 447 419 28 49 48 3550 8 22 10 1 11 399 419 (20) 41 48 3348 9 Newport Gwent Dragons 22 8 0 14 393 484 (91) 38 55 4642 10 Cardiff Blues 22 7 1 14 430 545 (115) 46 57 3235 11 Benetton Treviso 22 3 1 18 306 641 (335) 34 81 2319 12 22 3 0 19 266 639 (373) 27 80 0 3 15

Guinness PRO12 LV= Cup The Ospreys, so often Wales’ leading lights in the domestic The Cardiff Blues and the Ospreys both managed second league, again reached the play-off stages of the Guinness place finishes in their pools in the LV= Cup, but PRO12 only to lose out by a single score, 21-18, to and eventual finalists Munster in a thrilling encounter which went right to the were the teams to win the respective pools and reach the wire in front of a 16,000 plus crowd at . knockout stages. Glasgow eventually lifted the trophy with a 31-13 win over It was the Newport Gwent Dragons’ pool opponents Munster in the final, becoming the first Scottish team to Saracens who would eventually lift the cup, beating the break the Wales/Irish stronghold on the title - although Chiefs, 23-20, in the final at Franklin’s Gardens in March. they have some way to go to match the four titles held by The Dragons finished third in their pool above Bath but both Leinster and the Ospreys. behind . The Scarlets finished at the foot of their pool behind winners Leicester Tigers, Wasps and The Scarlets finished in sixth place with a creditable 11 . wins and three draws giving them a positive win ratio for the season and ensuring that all important qualification for next season’s Champions Cup. Both the Cardiff Blues and the Newport Gwent Dragons will feature in the Challenge Cup by virtue of their finishing positions in the table, with only the top seven teams going into Europe’s elite competition. A highlight of the season was the third Judgement Day fixture, the double-header event which sees all four teams battle it out at the Millennium Stadium on the same day. Saturday 25 April 2015 saw the Blues lose out to the Ospreys, 23-31 and the Newport Gwent Dragons go down to the Scarlets, 10-9, in front of a record 52,762 strong crowd in Cardiff. The Dragons in LV= Cup action

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Craig Evans and became full-time WRU referees

Match officials As part of the ongoing elite referee programme, the Group recruited two new full time referees in Craig Evans and Ben This was another year in which match officials from Wales Whitehouse, who had developed through the highly played prominent roles in the world game. successful referee academy system. Whitehouse made his was selected to referee at his third RWC with Leighton debut in the Guinness PRO12 and was also selected for Hodges joining him at the England-based event as one of the World Rugby U20 Championship in Italy. Evans and the assistant referees. Owens, who has firmly established Whitehouse along with Dan Jones also refereed in the U20 himself as one of the leading referees in world rugby, was Six Nations and British & Irish Cup tournaments. also selected to referee the inaugural EPCR Champions Cup Final as well as the Guinness PRO12 final. Former international referee Clayton Thomas continued in his role as a World Rugby referee selector. At EPCR level Wales provided four referees: Owens and Hodges, along with Ian Davies and Neil Hennessy.

54 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Wales Sevens in action

Sevens HSBC Sevens World Series The HSBC Sevens World Series proved difficult for Wales. Australia After a promising start to the campaign in Australia and Wales 36 – 0 American Samoa Dubai where they reached the quarter-finals, Wales then did not reach the Cup knock-out stages for the remaining Wales 24 – 19 Kenya seven rounds. Wales 12 – 19 South Africa Winning the Bowl in the penultimate round in Glasgow Wales 10 – 31 Fiji ensured Wales claimed some silverware in the season. Wales 5 – 39 New Zealand Wales entered the campaign having already lost three key players in Adam Thomas, James Davies and Dubai who moved to regional contracts with the Blues, Dragons Wales 14 – 19 Canada and Scarlets respectively. Between them the trio held a vast amount of tournament experience and their absence left Wales 26 – 21 Portugal a void to fill. Wales 5 – 12 South Africa Wales 17 – 31 Fiji Wales 7 – 31 Scotland

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 55 Elite rugby review

Wales Sevens in action

South Africa Wales 19 – 26 Samoa Scotland Wales 29 – 5 Kenya Wales 14 – 19 Scotland Wales 17 – 40 Fiji Wales 0 – 36 South Africa Wales 12 – 19 Portugal Wales 7 – 12 Scotland Wales 12 – 38 USA Hong Kong Wales 42 – 7 Portugal Wales 24 – 22 Samoa Wales 19 – 26 England Wales 5 – 0 Samoa Wales 14 – 24 Canada Wales 12 – 40 USA Wales 12 – 5 France New Zealand Wales 19 – 12 Kenya Wales 12 – 7 Argentina Wales 5 – 36 Australia Wales 38 – 7 Belgium England Wales 19 – 42 Fiji Wales 0 – 34 Scotland Wales 14 – 19 Australia Wales 20 – 12 Portugal Japan Wales 24 – 21 Japan Wales 41 – 0 Papua New Guinea Wales 10 – 19 Fiji Wales 0 – 38 New Zealand Wales 0 – 43 France Wales 7 – 10 England Wales 29 – 0 Brazil USA Wales 31 – 5 Hong Kong Wales 14 – 26 Argentina Wales 24 – 28 Fiji Wales 14 – 7 Argentina Wales 7 – 40 New Zealand Wales 12 – 17 Australia

56 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Wales Women score try in win over England

Women’s Evans and Rowe were introduced to international rugby after having successful careers in weightlifting and rowing Following their most successful Rugby World Cup ever, respectively. Both featured prominently in a Talent with a finishing spot of eighth in the tournament in France, Identification process held at the NCE and were ‘fast- Wales Women entered the 2015 Six Nations full of tracked’ into the elite women’s rugby pathway as a result. optimism. Evans made her presence felt in the front row while Rowe A 13-0 victory over England in their opening game at St became an integral part of the tight five from the second Helens was followed up with a 39-3 win against Scotland row as both players showed strong promise in their new as Rachel Taylor’s side moved to the top of championship careers. table. Off the pitch, Caroline Spanton took up the new role of Amid unprecedented coverage of the women’s game, National Women’s Rugby Manager. She joined the Group Wales then suffered consecutive defeats to France (28-7), from Hockey Wales where she was Head of Sport, leading Ireland (20-0) and Italy (22-5) to finish the campaign in fifth radical change with regards to culture, philosophy and position. growth of the game. The new role sees Caroline spearhead During the campaign head coach, , the development of all levels of womens and girls rugby, introduced five new caps to the international with up to and including the national team, working to create 17-year-old scrum half Keira Bevan joined by forwards a greater equality of opportunity within rugby. Melissa Clay, Amy Evans and Rebecca Rowe and centre Gemma Rowland.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 57 Elite rugby review

Liam Belcher scores in historic Wales U20 win over England

International pathway teams The elation, however, was tempered by the frustration of outscoring Scotland by five tries to three, but losing out in Wales U20 the final scoreline 36-34, at Netherdale, in the side's next A newly aligned coaching team took charge of the Wales game. U20 and U18 squads. National Academy Coaching A disappointing defeat in France ensued, but Wales Manager Allan Lewis was made coaching coordinator and finished their Six Nations campaign by beating Ireland 19- new international skills coaches Geraint Lewis, Chris 12, once again in North Wales, and Italy 23-21 in Rovereto Horsman and Jason Strange took a leading role in in north east Italy. coaching, in addition to Richard Hodges (Wales U20 defence) and Danny Milton for Wales U18. At the World Rugby U20 Championship, Wales were grouped with France, England and Japan. It was arguably For the Wales U20 side, a season that began with victory the toughest of the pools and a challenge that saw them over England in Colwyn Bay finished with Wales being beaten by the French 19-10 and England 30-16. They edged out by Australia in the 5th place final at the newly improved as the Pool matches progressed and defeated named World Rugby U20 Championship in Italy. Japan 66-3 before an impressive performance saw them It couldn’t have been a more encouraging start for the beat Ireland 22-12 in the 5th place semi-final before they side, beating the old enemy at Parc Erias, 21-15, thanks to found the Wallabies too strong; Australia running out 28- tries from Liam Belcher and Tom Phillips. 23 winners.

58 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Wales U18 squad

Results France narrowly edged it when the teams came face to face again, this time in Marcoussis in the spring - France U20 Six Nations winning 20-17 - but once again, Wales dug deep to Wales U20 21 – 15 England U20 perform fantastically well at St Helens, Swansea, a week later when England were the visitors. A terrific game ended Scotland U20 36 – 34 Wales U20 with Wales running out 23-15 winners. The biggest France U20 27 – 5 Wales U20 disappointment came in the quarter final of the Rugby Wales U20 19 – 12 Ireland U20 Europe U18 Championship with a 14-13 defeat against Italy. Thankfully, a 14-9 victory in the 5th place play off Italy U20 21 – 23 Wales U20 semi-final against Ireland was much more encouraging and World Rugby U20 Championship Wales completed their season with a 38-8 beating of Portugal to finish in fifth place. France U20 19 – 10 Wales U20 U18 International tournament South Africa England U20 30 – 16 Wales U20 Wales U18 21 – 24 England U18 Wales U20 66 – 3 Japan U20 Wales U18 15 – 40 SA Schools Knock-out stages Wales U18 10 – 9 France U18 Ireland U20 12 – 22 Wales U20 Other internationals 5/6 play-off France U18 20 – 17 Wales U18 Wales U20 23 – 28 Australia U20 Wales U18 23 – 15 England U18 Wales U18 FIRA/AER U18 tournament Wales U18 made progress throughout a testing season that saw them kick off their eight match campaign with a Wales U18 13 – 14 Italy U18 narrow 24-21 defeat at the hands of England in Cape Wales U18 14 – 9 Ireland Schools Town. Wales U18 38 – 8 Portugal U18 A strong South African Schools side were 40-15 winners when the teams met in George, five days later, but Wales Welsh Schools U16 struck back in their following match, to beat France 10-9 Welsh Schools U16 lost 34-0 to England U16 at Ystrad in Stellenbosch. Mynach in April.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 59 Elite rugby review

Principality Premiership table

Pos Team Pl W D L PF PA Diff TF TA TB LB Pts

1 Pontypridd 22 21 0 1 673 253 420 94 28 13 1 94

2 Ebbw Vale 22 15 0 7 539 402 137 73 41 10 3 73

3 Cross Keys 22 15 1 6 599 449 150 77 48 7 2 71

4 Cardiff 22 12 0 10 483 471 12 56 58 7 5 60

5 Bedwas 22 11 0 11 579 535 44 67 61 9 7 60

6 Quins 22 12 0 10 590 488 102 74 57 7 4 59

7 Aberavon 22 10 0 12 411 448 (37) 42 53 2 6 48

8 Llandovery 22 9 1 12 482 464 18 55 50 5 4 47

9 22 8 1 13 542 728 (186) 61 97 7 4 45

10 22 7 0 15 378 559 (181) 45 75 3 5 36

11 22 5 1 16 418 706 (288) 49 93 4 5 31

12 Newport 22 5 0 17 372 563 (191) 35 67 1 8 29

Pontypridd (-4): Pontypridd RFC incurred a deduction of four league points for the inclusion of an ineligible player

Semi-professional rugby The side finished 21 points clear of Ebbw Vale in the regular season and then confirmed their standing as At the semi-professional level the league celebrated the Welsh rugby's leading club, in the 2014/15 season, in a extension of its association with the Principality Building pulsating final at Sardis Road. Society with the announcement following the completion of a decade of sponsorship by the company. The Ebbw Vale gave everything they had but beating Premiership continued to embrace discussions over its own Pontypridd in such a high profile occasion proved a step evolution and a review ended with the approval for the too far for the side who were enjoying their first season expansion of the division to a 16 team league from the back with Welsh club rugby’s elite since 2010 after their start of season 2016/17. It was further decided there will promotion from the SSE SWALEC Championship. be no relegation from the league at the end of season Pontypridd made it to the quarter-finals of the British & 2015/16 and for the following three seasons. The decision Irish Cup, losing 24-10 to Worcester. In the SSE SWALEC was based on the findings of a Competitions Structure Cup, Bridgend overcame champions Pontypridd in a 19- Working Group which reviewed structures across the elite 15 victory to lift the trophy for the first time since 1980 in game. Another significant decision based on the working a thrilling encounter. group’s recommendations was to introduce Regional Premiership Select sides to take part in the British & Irish Principality Premiership play-off Cup from now on. It was also decided to introduce a Ebbw Vale 27 – 17 Cross Keys Premiership Challenge Cup as a development format to be played on the same weekends as British & Irish Cup Principality Premiership play-off final matches. Pontypridd 28 – 14 Ebbw Vale Pontypridd won a fourth successive Principality Premiership by virtue of beating Ebbw Vale 28-14 in the grand final.

60 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Pontypridd celebrate their defence of the Principality Premiership title

SWALEC CUP British & Irish Cup Quarter-finals Quarter Final Bridgend 20 – 17 Merthyr RFC Bristol 41 – 28 Yorkshire Carnegie Carmarthen Quins 30 – 21 Newport Worcester 24 – 10 Pontypridd Cross Keys 13 – 7 Bedwas Doncaster 38 – 17 Munster A Pontypridd 36 – 0 Llandovery 32 – 51 Leinster A Semi-finals Semi Final Carmarthen Quins 20 – 22 Bridgend Worcester 15 – 13 Leinster A Pontypridd 33 – 27 Cross Keys Doncaster 27 – 22 Bristol Final Final Pontypridd 15 - 19 Bridgend Doncaster 5 - 35 Worcester The Crawshays WRU President's XV Georgia tour Georgia 17 – 24 Crawshays WRU President’s XV Georgia 9 – 14 Crawshays WRU President’s XV

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 61 Elite rugby review

The launch of the Dragons’ Kitchen cook book, in support of the Welsh Rugby Charitable Trust

Charities year the Group produced The Dragon’s Kitchen cookbook featuring recipes supplied by current and former During the year the Group continued to embrace the international players along with other leading figures from Welsh Rugby Charitable Trust (“WRCT”) as the main Welsh Rugby. The profits from early sales amounted to charity supported by the Group. There were significant more than £30,000 which was presented to the WRCT. changes in the leadership of the WRCT as the long standing Secretary, Edward Jones, retired after a The Millennium Stadium Charitable Trust (“MSCT”) distinguished tenure in charge to be replaced by fellow continued to be supported through the Group by income Trustee, Dr Arun Madhri. The WRCT benefitted from its generated through a levy on every ticket purchased by patronage by the Duke of Cambridge and the Royal Patron people attending public events at the Millennium Stadium. ensured that significant funds gathered through his own The MSCT supports community based projects around charity activities were directed to the Trust in Wales. The Wales with grants of up to £7,500 to help specific National Squad again supported a range of mainly Wales initiatives and schemes. based charities in their activities across the year. During the

62 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 63 Stadium review

The 2017 Champions League Final will be held at the Millennium Stadium

The installation of the new Desso pitch system during the Another improvement which was installed and utilised year was undoubtedly an important factor in the decision during the year was the pitch-side plug-and-play facility announced by UEFA to stage the prestigious 2017 for broadcasters which has removed the requirement of Champions League Final at the Millennium Stadium. fully rigging the Stadium for each new major event. The cost of laying broadcast wiring systems has been removed The game which decides the champion football club of with cameras now able to plug straight into permanent, Europe is regarded as one of the landmark and most high underground wiring systems. The investment was fully profile events in the global sporting calendar. It will deliver supported and part-funded by the Welsh Government a huge boost in worldwide visibility for the Stadium, within their strategy to attract more major events to Wales. Cardiff and Wales while the economic impact on south east Wales is expected to top £40m. Across the year there was more investment in stadium maintenance and stadium improvements than in any other The new Desso pitch was laid at the Stadium in time for twelve month period across its sixteen year history. This the Dove Men Series games in the autumn of 2014 and included improvements to the changing rooms and proved to be a clear success. The pitch performed well medical facilities. A project was also commenced to during the year for major rugby internationals and the new improve the groundwork across the Westgate Street Terraplas cover was also utilised for a number of non- approaches to the Stadium through Gates 3 and 4 with sporting events. It became clear during the year that the new tarmac laid on access walkways, roads and parking new system delivers a vastly improved pitch while areas. preserving the ability of the Stadium to provide a truly multi event venue.

64 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Her Majesty at the Millennium Stadium

The Stadium also became the first to achieve recertification including the main national anthems on the pitch with of the ISO International 20121 Sustainability Award for its troops lining the perimeter of the ground and unfurling ground-breaking work in this area. The Stadium now colours on the pitch. utilises purified rainwater from the roof supplemented by During the year, the Stadium played host to a now a supply from an underground well on site to water the traditional and wide-ranging array of major events which pitch and for seat and floor cleaning. are known to accumulate an economic impact of around Surplus seating at the Stadium and a disused security £130m a year to the south east Wales economy. portakabin were all recycled and are now used by rugby The Stadium was showcased as the home of Welsh rugby clubs in Wales. through the now traditional calendar of Wales’ games One of the undoubted highlights of the year was the first from the Dove Men Series Autumn internationals through visit back to the Stadium by Her Majesty The Queen since the RBS 6 Nations championship matches. she first attended the Rugby World Cup Final in 1999. Her Again these events were utilised for a number of Majesty The Queen presented the Royal Welsh Regiment associated events with the Wales Commonwealth Games with new colours at a ceremony attended by more than team being invited onto the pitch during the Autumn 10,000 guests. internationals to accept the applause of rugby supporters. As Colonel in Chief of the regiment Her Majesty addressed The third annual Judgement Day event between the four some 500 troops after a ceremonial march-past before the Welsh Regions took place before the largest ever crowd colours were formally presented. The ceremony was for the event of more than 52,000 supporters. During the overseen by Brigadier Philip Napier, Colonel of the Royal year a date was set for Judgement Day IV to take place at Welsh and the regiment was also awarded the Freedom of the Stadium on 30 April 2016. the City of Cardiff during the visit. The SSE SWALEC Finals day continued to be a feature in The year was also marked by another important the sporting calendar of the Stadium with all three recognition of the links between the Group and the armed matches deciding the cup, plate and bowl taking place on forces. The Welsh Guards launched their regimental one day. centenary celebrations at the Stadium during the Wales v England match in the RBS Six Nations Tournament of 2015. As well as the rugby, there was an array of other major The regimental band provided the musical backdrop events throughout the year.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 65 Stadium review

The stadium welcomed bike riders raising money for former Wales centre Owen Williams

community is recognised as the oldest Somali community in Europe and is an important element of the culture of the capital. A charity bike ride for the injured Welsh rugby international and Cardiff Blues player, Owen Williams, also utilised the Stadium facilities. The riders set off from the Stadium to cycle to his home town of Aberdare. Among them was Wales assistant coach Robin McBryde. There were also visits to the Stadium by senior political figures throughout the year. The First Minister, Carwyn The stadium hosted two One Direction concerts Jones, attended several project launches and seminars representing Welsh Government. The UK parliament was The British FIM Speedway Grand Prix returned to the represented with separate visits from Prime Minister David Stadium for the flagship event of the series. It featured Cameron, the then Deputy Prime Minister Nick Clegg and some of the world’s best riders and attracted more than the then Leader of the Opposition, Ed Milliband. The US 40,000 fans. Ambassador to the UK, Matthew W Barzun, also visited An important highlight of the year was the arrival of One the Stadium. Direction for two consecutive evening concerts which The Duke and Duchess of Cambridge attended Wales attracted more than 110,000 fans. Around 40,000 queued international matches at the Stadium during the year, outside the Stadium in advance of gates opening for the enhancing their reputation as regular supporters of Welsh concerts each night. Although the volume of touring rock international rugby. bands across the UK is currently lower than in some previous years, the One Direction success served as proof The hospitality arm of the Group was significantly changed that the Stadium still features as a must visit venue for during the year with the creation of Millennium Stadium bands which attract the biggest crowds. Experience Limited, as further explained in the Strategic Report. Some 15 community events were hosted during the year including a Midnight Sleep Walk around the perimeter by Across the year the Stadium hosted a number of events supporters of the Ty Hafan cancer charity. Another highly aimed at promoting the England 2015 Rugby World Cup important community event was a football match between competition which will include eight games at the Stadium South Wales Police and a team made up from including two quarter finals. Volunteers have been representatives of the Somali community in Cardiff. This recruited from rugby clubs and communities across Wales

66 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Millennium Stadium control room on event day to help host the event and there have been various training project based on Welsh rugby. The pupils researched, seminars at the Stadium to prepare the volunteer designed and published a reading book on Welsh rugby workforce. specifically aimed at special needs pupils. It will be available at local libraries and from the school itself. The exhibition The pupils of Penybryn special needs school in Swansea is mounted in the media centre which is attended by proved to be popular visitors to the Stadium during the hundreds of journalists from around the world on year as they mounted an exhibition promoting a special important event days. There were also visitors from Uruguay filming a special documentary featuring the Stadium as part of their nation’s promotion of the national team’s involvement in the same pool as Wales during the Rugby World Cup. This film was shown in cinemas across South America and other worldwide outlets. The Group also played an active role in the UK wide activities to commemorate the 100th anniversary of the start of World War One. The Group co-produced, with ITV Wales, a documentary called Rugby At War which was presented by the former Wales captain and broadcaster Eddie Butler which focused on the thirteen Welsh international players who perished during the conflict. The anniversary was also commemorated at the Stadium with the laying of a wreath during the Dove Men Series international games. The Stadium tours again proved popular with some 60,000 annual visitors taken behind the scenes. These guided tours have become a growing attraction in recent years and this has earned award winning recognition. The Stadium received the TripAdvisor 2015 Certificate of Excellence which recognises consistently top class traveller A Millennium Stadium tour reviews on the popular tourism site.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 67 Directors’ report for the year ended 30 June 2015

Gareth Williams, Company Secretary

The Directors present their report and the Group and Financial risk factors Company’s audited financial statements for the year ended The Group is exposed to financial risks from interest 30 June 2015. bearing assets and liabilities and interests in overseas Principal activities and review of the business companies. These expose the Group to financial risks including foreign currency risk, interest rate risk, credit risk The principal activity and primary objective of the Group is and liquidity risk. to promote, foster, encourage, control and improve rugby football throughout Wales. This activity and the likely • Foreign exchange risk future development of the Group are reviewed in the Where applicable, the Group mitigates foreign Chairman’s Statement, the Group Chief Executive’s exchange risk with the use of forward contracts. As Summary and the Strategic Report. at 30 June 2015, the Group has no material foreign exchange risk (2014: £nil). Financial Reporting Standard 102 (FRS102) • Interest rate risk The Group has chosen early adoption of Financial The Group has interest bearing liabilities. As shown Reporting Standard 102 (FRS102). The impact of this on in Note 15, the Group’s policy is to part hedge against the Group and Company's financial position can be seen any interest risk on liabilities by using derivative in Note 26 of the accounts. FRS102 has been adopted early instruments to effectively hedge the interest rate risk. by the Group as at 30 June 2015. The date of transition is The Group has interest bearing assets which are 1 July 2013. invested at differing interest rates; these interest rates are fixed at the outset of the investment.

A NatWest RugbyForce club workshop

68 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 • Credit risk Donations The Group has no significant concentration of credit The Group’s primary charitable donation was £82,000 risk. The Group has implemented policies that require (2014: £78,000) to the Welsh Rugby Charitable Trust. This appropriate credit checks on potential credit trust, which is independent from the Group, was set up to customers before sales commence. Interest bearing provide support to players who were injured whilst playing assets are only invested with financial institutions that rugby in Wales. There were no political donations (2014: have excellent credit ratings. £nil). • Liquidity risk Corporate social responsibility The Group maintains a balance between continuity of funding and flexibility. As at 30 June 2015, only The Group recognises its responsibility to the communities 31% (2014: 24%) of the borrowings were due to which are affected by its businesses and regularly reviews expire within five years. its policies with regard to social, ethical and environmental matters. Any matters in any of these categories which may Directors materially affect the business of the Group are reviewed The Directors who held office during the year and up to as required by the Board. the date of signing the financial statements are listed on Going concern page 101. The Directors have reviewed the financial position of the Group for a period of two years from the year end against the expected recurring operational income, expenditure

The Rugby World Cup trophy tour stops at Rugby Club

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 69 Directors’ report for the year ended 30 June 2015

The Disability 6 Nations

and interest costs in conjunction with the Group’s banking the Company and of the profit or loss of the Group and covenants. On this basis, the Directors consider that the Company for that period. In preparing these financial Group has more than sufficient resources to continue in statements, the Directors are required to: operational existence for the foreseeable future. For this • select suitable accounting policies and then apply reason, the Directors continue to adopt the going concern them 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 Accounting Report and the financial statements (the “financial Standards, including FRS102 have been followed, statements”) in accordance with applicable law and subject to any material departures disclosed and regulations. explained in the financial statements; Company law requires the Directors to prepare financial • notify its shareholders in writing about the use of statements for each financial year. Under that law the disclosure exemptions, if any, of FRS102 used in the Directors have prepared the financial statements in preparation of financial statements; and accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally • prepare the financial statements on the going Accepted Accounting Practice), including Financial concern basis unless it is inappropriate to presume Reporting Standard 102 The Financial Reporting Standard that the Company will continue in business. Applicable in the UK and Republic of Ireland (FRS 102). The Directors are responsible for keeping adequate Under company law, the Directors must not approve the accounting records that are sufficient to show and explain financial statements unless they are satisfied that they give the Company’s transactions and disclose with reasonable a true and fair view of the state of affairs of the Group and accuracy at any time the financial position of the Company

70 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 WRU vice patron the Duke of Cambridge meets members of the Welsh Rugby Charitable Trust and the Group and enable them to ensure that the (b) The Directors has taken all the steps that they ought to financial statements comply with the Companies Act 2006. have taken as a Director in order to make themselves They are also responsible for safeguarding the assets of the aware of any relevant audit information and to Company and the Group and hence for taking reasonable establish that the Company’s auditors are aware of that steps for the prevention and detection of fraud and other information. irregularities. Independent auditors Following an initial request for further information from PricewaterhouseCoopers LLP have indicated their the FRC regarding the treatment of certain items within willingness to continue in office and a resolution to the annual report of the Group for a prior year, the Group reappoint them will be proposed at the forthcoming can confirm that the matter has now concluded with the Annual General Meeting. Group now providing certain additional disclosures in this annual report. By Order of the Board 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 (a) So far as the Directors are aware, there is no relevant audit information of which the Company’s auditors are Gareth Williams unaware; and Company Secretary

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 71 Consolidated income statement for the year ended 30 June 2015

Total Total Note 2015 2014 £’000 £’000

Match, commercial, hospitality and other income 56,079 49,632 Competition income 8,129 8,861 Turnover 2 (a) 64,208 58,493

Administrative expenses 2 (b) (50,030) (55,198)

Operating profit before depreciation, amortisation, exceptional items and allocations to affiliated organisations (“EBITDA”) 30,284 27,300 Allocations to affiliated organisations 2 (d) (22,607) (22,471) Exceptional items 4 10,000 1,822 Exceptional depreciation 4 - (194) Depreciation and amortisation (net of grant release) 4 (3,499) (3,162)

Operating profit 14,178 3,295

Interest payable and similar charges 3 (1,280) (1,190) Interest receivable and similar income 3 23 20

Profit on ordinary activities before tax 4 12,921 2,125

Tax on profit on ordinary activities 6 (667) (501)

Profit for the financial year 12,254 1,624

Profit attributable to: Company 12,091 1,624 Non-controlling interest 163 -

12,254 1,624

The turnover and operating profit shown above are derived from continuing operations.

72 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Consolidated statement of comprehensive income for the year ended 30 June 2015

Total Total Note 2015 2014 £’000 £’000

Profit for the financial year 12,254 1,624 Other comprehensive income: Cash flow hedges • Change in value of interest rate hedging instruments 15 (19) 257 • Reclassifications to profit and loss of foreign exchange hedging instruments (59) - • Change in value of foreign exchange hedging instruments 15 315 59 • Total tax on components of other comprehensive income 6 (47) (63) Other comprehensive income for the year, net of tax 190 253 Total comprehensive income for the year 12,444 1,877

Total comprehensive income attributable to: Company 12,281 1,877 Non-controlling interest 163 - 12,444 1,877

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 73 Consolidated and company balance sheets as at 30 June 2015

2015 2014 2015 2014 Group Group Company Company Note £’000 £’000 £’000 £’000

Fixed assets Intangible asset 8 3,035 - - - Tangible assets 9 125,585 127,256 38,533 38,346 Investments 10 - - 16,560 60 128,620 127,256 55,093 38,406 Current assets Stock 11 703 352 - - Deferred tax asset 17 - - 100 138 Financial assets • Derivative financial instrument 15 315 59 315 59 • Debtors 12 7,469 8,060 56,859 78,554 • Cash at bank and in hand 13 3,110 79 3,001 - 11,597 8,550 60,275 78,751 Current liabilities Creditors – amounts falling due within one year 14 (30,045) (28,758) (27,163) (23,563) Net current (liabilities)/assets (18,448) (20,208) 33,112 55,188

Total assets less current liabilities 110,172 107,048 88,205 93,594

Creditors – amounts falling due 14 (42,893) (54,954) (42,893) (54,954) after more than one year Accruals and deferred income 16 (37,221) (37,459) - - Provisions for liabilities 17 (1,437) (1,471) - -

Net assets 28,621 13,164 45,312 38,640

Capital and reserves Other reserves 2,314 2,314 2,610 2,610 Hedging reserve 108 (82) 108 (82) Profit and loss reserve 23,023 10,932 42,594 36,112 Capital and reserves attributable to: Company 25,445 13,164 45,312 38,640 Non-controlling interests 3,176 - - - Total capital and reserves 28,621 13,164 45,312 38,640

These financial statements were approved by the Board of Directors on 25 August 2015 and signed on its behalf by:

Gareth Davies Roger Lewis Chairman Group Chief Executive Officer

The notes on pages 78 to 98 form an integral part of these financial statements. The Welsh Rugby Union Limited Company Number 3419514

74 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Consolidated statement of changes in equity for the year ended 30 June 2015

Other Hedging Profit and Non- Total reserves reserve loss reserve controlling interest Note £'000 £'000 £'000 £'000 £'000

Balance as at 1 July 2013 2,314 (335) 9,308 - 11,287 Profit for the year --1,624 - 1,624 Other comprehensive income for the year: • Fair value gain on interest rate 15 - 257 --257 derivative financial instrument • Fair value gain on foreign exchange 15 - 59 --59 derivative financial instrument • Tax on other comprehensive income 6-(63) --(63) Total other comprehensive income for the year - 253 --253 Total comprehensive income for the year - 253 1,624 - 1,877

Balance as at 30 June 2014 2,314 (82) 10,932 - 13,164

Balance as at 1 July 2014 2,314 (82) 10,932 - 13,164 Profit for the year --12,091 163 12,254 Other comprehensive income for the year: • Fair value loss on interest rate 15 - (19) --(19) derivative financial instrument • Fair value gain on foreign exchange 15 - 256 --256 derivative financial instrument • Tax on other comprehensive income 6-(47) --(47) Total other comprehensive income for the year - 190 --190 Total comprehensive income for the year - 190 12,091 163 12,444 Arising from the formation of MSEL 8- - -3,260 3,260 Dividends ---(247) (247) Balance as at 30 June 2015 2,314 108 23,023 3,176 28,621

Other reserves relates to reserves pre-incorporation in 1997.

The hedging reserve is used to record transactions arising from the Group’s cash flow hedging arrangements.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 75 Company statement of changes in equity for the year ended 30 June 2015

Other Hedging Profit and Total reserves reserve loss reserve

Note £'000 £'000 £'000 £'000

Balance as at 1 July 2013 2,610 (335) 32,770 35,045 Profit for the year --3,342 3,342 Other comprehensive income for the year: • Fair value gain on interest rate 15 - 257 - 257 derivative financial instrument • Fair value gain on foreign exchange 15 - 59 - 59 derivative financial instrument • Tax on other comprehensive income 6-(63) - (63) Total other comprehensive income for the year - 253 - 253 Total comprehensive income for the year - 253 3,342 3,595

Balance as at 30 June 2014 2,610 (82) 36,112 38,640

Balance as at 1 July 2014 2,610 (82) 36,112 38,640 Profit for the year --6,482 6,482 Other comprehensive income for the year: • Fair value loss on interest rate 15 - (19) - (19) derivative financial instrument • Fair value gain on foreign exchange 15 - 256 - 256 derivative financial instrument • Tax on other comprehensive income 6-(47) - (47) Total other comprehensive income for the year - 190 - 190 Total comprehensive income for the year - 190 6,482 6,672 Balance as at 30 June 2015 2,610 108 42,594 45,312

Other reserves relates to reserves pre-incorporation in 1997.

The hedging reserve is used to record transactions arising from the Company’s cash flow hedging arrangements.

76 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Consolidated statement of cash flows for the year ended 30 June 2015

2015 2015 2014 2014 Note £’000 £’000 £’000 £’000

Net cash from operating activities 22 6,200 7,931 Taxation paid (2,162) (1,699) Net cash generated from operating activities 4,038 6,232

Cash flow from investing activities Interest received 23 20 Purchase of tangible fixed assets (3,461) (350) Net cash used in investing activities (3,438) (330) Cash flow from financing activities Interest paid (1,267) (1,177) Grant received 1,720 - Grant repaid (100) (100) Drawdown of bank loans 17,300 5,000 Repayment of bank loans (14,967) (10,308) Debentures redeemed (8) (29) Dividends paid to non-controlling interests (247) - Net cash used in financing activities 2,431 (6,614)

Net increase/(decrease) in cash and cash equivalents 23 3,031 (712) Cash and cash equivalents at the beginning of the year 79 791 Cash and cash equivalents at the end of the year 3,110 79

The notes on pages 78 to 98 form an integral part of these financial statements.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 77 Notes to the financial statements for the year ended 30 June 2015

1. Accounting policies The Company has taken advantage of the following exemptions for the Company financial statements: a. General information (i) from preparing a statement of cash flows, on the basis that it The Company is limited by guarantee and is incorporated and is a qualifying entity and the consolidated statement of cash domiciled in the UK. The address of its registered office is flows, included in these financial statements, includes the Millennium Stadium, Westgate Street, Cardiff, CF10 1NS. Company’s cash flows; b. Statement of compliance (ii) from the financial instrument disclosures, required under The Group and individual financial statements of The Company FRS102 paragraphs 11.39 to 11.48A and paragraphs 12.26 have been prepared in compliance with United Kingdom to 12.29, as the information is provided in the consolidated Accounting Standards, including Financial Reporting Standard financial statement disclosures; and 102, ‘‘The Financial Reporting Standard applicable in the United (iii) from disclosing the Company key management personnel Kingdom and the Republic of Ireland’’ (‘‘FRS102’’) and the compensation, as required by FRS102 paragraph 33.7. Companies Act 2006. FRS102 has been early adopted by the Group and Company at 30 June 2015. The date of transition is g. Basis of consolidation 1 July 2013. The Company is considered by the Directors to be a The consolidated financial statements incorporate the financial Public Benefit Entity under the definition in FRS102. statements of The Welsh Rugby Union Limited and its c. Summary of significant accounting policies subsidiaries, Millennium Stadium plc, WRU Supporters Club Limited, WRU National Centre of Excellence Limited and The principal accounting policies applied in the preparation of Millennium Stadium Experience Limited, all of which are made these Group and Company financial statements are set out up to 30 June 2015 and prepared using consistent accounting below. These policies have been consistently applied to all the policies. All intergroup transactions are eliminated on years presented, unless otherwise stated. Details of the transition consolidation. to FRS102 are disclosed in note 26. h. Foreign currency d. Basis of preparation The Group’s financial statements are presented in pound sterling These Group and Company financial statements are prepared on and rounded to thousands. The Group’s functional and the going concern basis, under the historical cost convention, as presentational currency is in pound sterling. modified by the recognition of certain financial assets and liabilities measured at fair value. i. Turnover

e. Going concern The Group, when acting as principal, recognises revenue when (a) the significant risks and rewards of ownership have been The Directors have reviewed the financial position of the Group transferred to the buyer; (b) the Group retains no continuing for a period of two years from the year end against the expected involvement or control over the goods; (c) the amount of revenue recurring operational income, expenditure and interest costs in can be measured reliably; (d) it is probable that future economic conjunction with the Group’s banking covenants. On this basis benefits will flow to the entity and (e) when the specific criteria the Directors consider that the Group has more than sufficient relating to each of the Group’s sales channels have been met, as resources to continue in operational existence for the foreseeable described below. future. For this reason the Directors continue to adopt the going concern basis in preparing the Group’s financial statements. Turnover represents amounts invoiced, net of returns, discounts and rebates allowed by the Group and value added taxes, in f. Exemptions for qualifying entities under FRS102 for the respect of the sale of goods and services. Ticket income, sale of Company financial statements hospitality packages, competition income and other event FRS102 allows a qualifying entity certain disclosure exemptions, income are recognised as revenue when the related event is subject to certain conditions, which have been complied with, staged. Revenue determined by commercial contracts, which including notification of, and no objection to, the use of makes up the majority of broadcasting revenue, sponsorship and exemptions by the Company’s board members. royalty revenue and lease of hospitality boxes is recognised based on the relevant contractual terms. Where consideration is

78 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 received in kind, income and expenditure are grossed up on the cost to estimated residual values over their estimated useful basis of arms’ length commercial rates. economic lives as follows:

Incoming resources from non-exchange transactions are Stadium Up to 50 years recognised as follows: Other buildings Up to 50 years Centre of Excellence Up to 10 years (a) Transactions that do not impose specified future performance- Other Fixed assets Up to 10 years related conditions on the recipient are recognised in income when the resources are received or receivable. Leasehold buildings are depreciated over the lower of 50 years and the remaining life of the lease. (b) Transactions that do impose specified future performance- related conditions on the recipient are recognised in income m. Investments in subsidiaries only when the performance-related conditions are met. Investments in subsidiaries are included at cost less any (c) Where resources are received before the revenue recognition accumulated impairment losses. In accordance with the criteria are satisfied, a liability is recognised. Companies Act 2006, the Group has taken advantage of the exemption afforded to certain subsidiary companies to be Incoming resources from non-exchange transactions are audited. The Company has given a guarantee to its subsidiary measured as follows: WRU Supporters Club Limited under section 479A of the (a) Donated services and facilities that would otherwise have Companies Act 2006. been purchased shall be measured at the value to the entity. n. Leased assets (b) All other incoming resources from non-exchange transactions Where the Group enters into a lease which entails taking shall be measured at the fair value of the resources received substantially all the risks and rewards of an asset, the lease is or receivable. treated as a “hire purchase arrangement”. The present value of j. Exceptional items the minimum lease payments is recorded in the balance sheet as a tangible fixed asset. Future instalments under such leases, net In order to improve the understanding of the financial of finance charges, are included within creditors. Rentals payable statements, the Directors have identified separately, on the face are apportioned between the finance element, which is charged of the income statement, those items of income and charge to the income statement, and the capital element which reduces which by their size, nature and/or incidence are exceptional to the outstanding hire purchase liability. the financial statements for the year. Where appropriate these are shown as exceptional within the categories of expenditure to All other leases are accounted for as “operating leases” and their which they relate. rentals are charged to the income statement on a straight line basis over the life of the lease. k. Intangible fixed assets o. Stock Intangible assets comprise Hospitality Catering Rights. These are initially recognised at fair value and are then amortised on a Stock is valued at the lower of cost and estimated selling price straight line basis over the contracted period of 10 years. The less costs to sell and consists of finished goods purchased for carrying value of intangible assets is reviewed for impairment resale and raw materials for use in the supply of catering services. when events or changes in circumstances indicate the carrying Where necessary, provision is made for obsolete, slow moving values may not be recoverable. and defective stock. Cost is determined on a first in first out basis. l. Tangible fixed assets p. Current and deferred tax

Tangible fixed assets are stated at historic cost less accumulated The tax expense comprises current and deferred tax. The current depreciation and accumulated impairment losses. Cost includes tax charge is calculated on the basis of tax laws enacted or the original purchase price of the asset and the costs attributable substantively enacted at the Balance Sheet date. to bringing the asset to its working condition for its intended use. Deferred tax arises from timing differences that are differences The tangible fixed assets of the Group, excluding land, are between taxable profits and total comprehensive income as depreciated on a straight line basis calculated to write down their stated in the financial statements. These timing differences arise

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 79 Notes to the financial statements for the year ended 30 June 2015

from the inclusion of income and expenses in tax assessments in Such assets are subsequently carried at amortised cost using the periods different from those in which they are recognised in effective interest method. financial statements. At the end of each reporting period financial assets measured at Deferred tax is recognised on all timing differences at the amortised cost are assessed for objective evidence of impairment. reporting date except for certain exceptions. Unrelieved tax losses They are first assessed individually for impairment, or collectively and other deferred tax assets are only recognised when it is where the debtors are not individually significant. Where there is probable that they will be recovered against the reversal of no objective evidence of impairment for an individual debtor, it deferred tax liabilities or other future taxable profits. is included in a group of debtors with similar credit risk characteristics and these are assessed collectively for impairment Deferred tax is measured using tax rates and laws that have been based on their ageing. enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the q. Pension costs estimated cash flows discounted at the asset’s original effective For defined contribution schemes the amount charged to income interest rate. The impairment loss is recognised in the Income statement in respect of pension costs and other post-retirement Statement. benefits is the contributions payable in the year. Differences If there is a decrease in the impairment loss arising from an event between contributions payable in the year and contributions occurring after the impairment was recognised, the impairment actually paid are shown as either accruals or prepayments in the is reversed. The reversal is such that the current carrying amount balance sheet. does not exceed what the carrying amount would have been had r. Grants the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement. Grants receivable in respect of tangible fixed assets are credited to the income statement over the expected useful economic lives Other financial assets, including investments in equity instruments of the relevant assets to which they relate. Grants received but which are not subsidiaries, associates or joint ventures, are initially not yet released to the income statement are included as deferred measured at fair value, which is normally the transaction price. income in the balance sheet. Revenue grants are released to the Such assets are subsequently carried at fair value and the changes income statement in the same year as the related expense. in fair value are recognised in the Income Statement, except that s. Capitalisation of interest investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at Interest is capitalised on major development projects and capital cost less impairment. works in progress where appropriate. Capitalisation ceases when substantially all the activities necessary to get the asset ready for Financial assets are derecognised when (a) the contractual rights use are completed. Capitalised interest is amortised to the income to the cash flows from the asset expire or are settled, or (b) statement over the useful economic life of the asset to which it substantially all the risks and rewards of the ownership of the relates. asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control t. Financial instruments of the asset has been transferred to another party who has the The Group has chosen to adopt Sections 11 and 12 of FRS102 in practical ability to unilaterally sell the asset to an unrelated third respect of financial instruments. party without imposing additional restrictions.

(i) Financial assets (ii) Financial liabilities

Basic financial assets, including trade and other debtors, cash and Basic financial liabilities, including trade and other payables, bank bank balances and loans due from Regions and clubs, are initially loans and loans from fellow Group companies that are classified recognised at transaction price, unless the arrangement as debt, are initially recognised at transaction price, unless the constitutes a financing transaction, where the transaction is arrangement constitutes a financing transaction, where the debt measured at the present value of the future receipts discounted instrument is measured at the present value of the future receipts at a market rate of interest. discounted at a market rate of interest.

80 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Debt instruments are subsequently carried at amortised cost, The gain or loss recognised in other comprehensive income is using the effective interest rate method. reclassified to the income statement when the hedge relationship ends. Hedge accounting is discontinued when the hedging Trade creditors are obligations to pay for goods or services that instrument expires, no longer meets the hedging criteria, the have been acquired in the ordinary course of business from forecast transaction is no longer highly probable, the hedged suppliers. Accounts payable are classified as current liabilities if debt instrument is derecognised or the hedging instrument is payment is due within one year or less. If not, they are presented terminated. as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost u. Public benefit entity concessionary loans (including using the effective interest method. debentures) The derivative instruments utilised by the Group are interest rate Concessionary loans arrangements, when received for the swaps and foreign exchange forward contracts. purpose of furthering the primary objective of the Group, which include any debentures or bank loans received below the Derivatives are initially recognised at fair value on the date a prevailing market rate of interest are initially measured at the derivative contract is entered into and are subsequently re- amount received. In subsequent years, the carrying amount of measured at their fair value on the market price data from concessionary loans in the financial statements is adjusted to relevant counterparties. Changes in the fair value of derivatives reflect any accrued interest payable or receivable. are recognised in the Income Statement in finance costs or finance income as appropriate, unless they are included in a v. Cash and cash equivalents hedging arrangement. Cash at bank and in hand includes highly liquid investments that Financial liabilities are derecognised when the liability is are readily convertible into known amounts of cash and which extinguished, that is when the contractual obligation is are subject to an insignificant risk of change in value. discharged, cancelled or expires. w. Recognition of constructive liabilities (iii) Offsetting Where an event occurs that creates a constructive or legal Financial assets and liabilities are offset and the net amounts obligation on the Group and it is probable that an outflow of presented in the financial statements when there is a legally resources, which can be reliably estimated, will be required to enforceable right to set off the recognised amounts and there is settle the obligation a liability is recognised in full in the period an intention to settle on a net basis or to realise the asset and when the event occurred. settle the liability simultaneously. Constructive liabilities are measured at the present value of (iv) Hedging arrangements expenditures expected to be required to settle the obligation. In certain circumstances the transfer of cash to settle the liability The Group applies hedge accounting in respect of forward may occur in subsequent periods. foreign exchange contracts held to manage the cash flow exposures of forecast transactions denominated in foreign x. Critical judgements in applying the Group’s accounting currencies. These foreign exchange hedges have been designated policies as cash flow hedges. (i) Control of MSEL (note 10) The Group also applies hedge accounting for transactions entered Assessing whether the Group controls MSEL requires judgment. into to manage the cash flow exposures of borrowings. Interest The Group holds 83.5% of the voting rights of MSEL and has a rate swaps are held to manage the interest rate exposures and 75% majority representation on the board but through the are designated as cash flow hedges of floating rate borrowings. shareholders agreement there are a number of decisions that Changes in the fair values of derivatives designated as cash flow require unanimous consent of all the shareholders. The Directors hedges, and which are effective, are recognised directly in equity. have assessed that the decisions that require unanimous consent Any ineffectiveness in the hedging relationship (being the excess give protective rights only and that the control of the day to day of the cumulative change in fair value of the hedging instrument operating decisions and strategic financial decisions is retained since inception of the hedge over the cumulative change in the by the Group. Therefore, the Directors consider that MSEL is a fair value of the hedged item since inception of the hedge) is subsidiary of the Company and the results of MSEL are included recognised in the income statement. in the Group consolidated financial statements.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 81 Notes to the financial statements for the year ended 30 June 2015

(ii) Qualification of Group as a Public Benefit Entity (ii) Impairment of Intangible asset (note 8)

Assessing whether the Group qualifies as a Public Benefit Entity The Group considers whether intangible assets are impaired. requires judgement. The Directors have reviewed the definition Where an indication of impairment is identified the estimation of of a public benefit entity, as provided by FRS102 Glossary of recoverable value requires estimation of the recoverable value of Terms, and consider that this has been met as the primary the cash generating units (CGUs). This requires estimation of the objective of the Group is to promote, foster, encourage, control future cash flows from the CGUs and also selection of and improve rugby football throughout Wales with any wealth appropriate discount rates in order to calculate the net present created by the Group, by definition of its legal status, being re- value of those cash flows. invested back into Welsh Rugby rather than providing a financial return to its members. Therefore, the Directors have adopted the FRS102 public benefit entity standards when preparing the Group consolidated financial statements.

(iii) Acting as principal in respect of competition income

Assessing whether the Group acts as agent or principal in the receipt of competition incomes requires judgement. The Group receives revenue from the organisers of competitions in which the Regions participate, the Pro 12 League, the European Champions Cup and the European Challenge Cup. The net revenue is passed on to the Regions. The Group assessed the factors presented in the respective agreements with the Regions and the competition providers and concluded that its ability to establish the commercial returns, to perform its contractual commitment to determine the competition participants provided sufficient evidence that they are principal to the transaction with the competition provider.

y. Key accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment in the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Carrying value of the Company’s investment in MSEL (note 10)

The Company holds a significant investment in MSEL. The Company considers whether the carrying value of this investment is appropriate by estimating the net present value of expected future cashflows from the investment. The estimation of the net present value of future cashflows requires a combination of assumptions including revenues and costs, together with the discount rate used.

82 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 2. Business Analysis All income is derived from activities within the UK. The information below is provided as additional information. (a) Turnover Restated 2015 2014 Turnover is analysed as follows: £’000 £’000 Match income 35,393 32,438 Commercial income 9,806 9,817 Hospitality and catering income 8,146 4,174 Other event income 1,319 1,468 Other income 1,415 1,735 56,079 49,632 Competition income 8,129 8,861 64,208 58,493 The 2014 comparative has been restated to separate hospitality and catering income from commercial income. 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 2015, other income includes £0.5m (2014: £0.5m) of grants received from Sport Wales, matched by expenditure included in community rugby costs. Competition income represents amounts received from European Pro Club Rugby, 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 Rugby Services Agreement 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: 2015 2014 £’000 £’000 Operational costs (see (c) below) 33,924 31,193 Exceptional items (see note 4) (10,000) (1,822) Depreciation and amortisation (net of grant release) 3,499 3,162 Accelerated depreciation (exceptional) - 194 Allocations to affiliated organisations (see (d) below) 22,607 22,471 50,030 55,198

(c) Operational costs: Restated 2015 2014 £’000 £’000 Business and administration 6,695 6,119 Direct 11,149 11,550 Hospitality and catering costs 3,551 1,446 Elite rugby 4,313 4,355 Community rugby 2,825 2,734 Stadium 5,391 4,989 33,924 31,193 The 2014 comparative has been restated to separate hospitality and catering costs from direct costs. (d) Allocations to affiliated organisations 2015 2014 These are analysed as follows: £’000 £’000 Competition income (see note 2(a)) 8,129 8,861 National Dual Contracts (see note 5) 2,000 - Directly from Company 7,034 8,210 Regions – professional rugby 17,163 17,071 Clubs – semi-professional rugby 1,461 1,136 Clubs – community rugby and affiliates 3,983 4,264 22,607 22,471

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 83 Notes to the financial statements for the year ended 30 June 2015

3. Financing costs 2015 2014 £’000 £’000 Interest payable and similar charges Interest payable on bank and similar loans 736 818 Interest payable on corporation tax settlement 42 84 Amortisation of debenture issue costs 13 13 Bank charges 489 275 Total 1,280 1,190

Interest receivable and similar income Short term deposits 23 20 Total 23 20

4. Profit on ordinary activities before tax Profit on ordinary activities before tax is arrived at after charging/(crediting): 2015 2014 Notes £’000 £’000

Depreciation on owned assets 5,132 4,910 Accelerated depreciation (d) - 194 Amortisation of intangible assets 225 - Release of deferred income (grant release) (1,858) (1,748) Net charge to the income statement 3,499 3,356 Rental of land and buildings 365 363 Trade debtors impairment 5 18

Exceptional items Notes Tranche C Loan released in exchange for one share (a) (10,000) - Rebate from business rates reassessment (b) - (1,989) Legal and professional costs (c) - 167 Total exceptional items (10,000) (1,822)

During the current and previous year, the Group received income and 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 income statement as additional information. Detailed commentary is shown below: 2015: (a) During 2015 the Tranche C Loan of £10m that was previously owed by the Group was released in exchange for the issue of one share in Millennium Stadium plc. The fair value of this share is assessed at £1, which is equivalent to the par value, and therefore the resulting gain has been treated as exceptional income. 2014: (b) Following the 2005 and 2010 rateable value assessments, the Group challenged the value ascribed to the Millennium Stadium. The Group received notification during the previous 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 were treated as exceptional income. (c) The Group incurred legal and professional costs that were considered exceptional. (d) 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.

84 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 4. Profit on ordinary activities before tax (continued) During the year, the Group obtained the following services from the Group’s auditor: 2015 2014 £’000 £’000

Fees payable to Company’s auditor for the audit of the parent company and consolidated 66 27 financial statements Fees payable to the Company’s auditor for other services: The audit of the Company’s subsidiaries pursuant to legislation 28 20 Taxation compliance services 26 28 Other non-audit services 35 80

5. Staff numbers and costs Staff numbers 2015 2014 2015 2014 Group Group Company Company The monthly average number of employees, including directors in a service contract, during the year was: Management and administration 69 60 38 32 Direct 24 23 21 20 Elite rugby 29 35 29 35 Community rugby 53 57 53 57 Stadium 36 36 - - 211 211 141 144

The above staff numbers do not include any players representing national teams (including those on National Contracts), stewards engaged for events nor do they include the non-executive Directors of the Company. Staff costs 2015 2014 2015 2014 Group Group Company Company £’000 £’000 £’000 £’000 The staff costs during the year were as follows: Wages and salaries 7,853 7,803 5,835 5,926 Social security costs 815 795 648 619 Pension costs – defined contribution schemes 719 688 543 523 9,387 9,286 7,026 7,068

The above numbers do not include costs in respect of National Dual Contracted players. The total costs of these players for the provision of their services amounted to £2.1m (2014: £nil), for which a contribution of £0.8m (2014: £nil) was received from the Regions. Under the terms of the Rugby Services Agreement with the Regions the Group is required to remit any surplus from the £2.0m allocated for National Dual Contracted players to the Regions. The balance of £0.7m was therefore due to the Regions and a total of £2.0m was therefore attributed to the National Dual Contracted players’ element of Regions allocations (note 2(d)). In addition to the above amounts, £1.9m (2014: £2.2m) 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)).

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 85 Notes to the financial statements for the year ended 30 June 2015

5. Staff numbers and costs (continued) Directors’ emoluments 2015 2014 £’000 £’000 The Directors’ emoluments, during the year, were as follows: • Aggregate emoluments 399 378 • Benefits 19 24 418 402

The emoluments above include fees of £44,000 (2014: £35,000 only one Chairman) payable to the two Chairmen who served during the year. The Group received £14,000 (2014: £18,000) from third parties in respect of the above emoluments. There is one Director accruing benefits under a defined contribution pension scheme (2014: one). Emoluments of the highest paid director 2015 2014 £’000 £’000 The emoluments of the highest paid director, during the year, were as follows: Aggregate emoluments 349 343 Benefits 13 10 362 353

Key management compensation Key management includes certain directors and the Executive Board. The compensation paid or payable to key management for employee services, including the amounts shown as Directors’ emoluments above, is shown below: 2015 2014 £’000 £’000 Salaries and benefits 1,157 1,130 Company contributions to defined contribution pension schemes 128 105 1,285 1,235

6. Income tax 2015 2014 £’000 £’000 (a) Tax expense included in the income statement Current tax UK corporation tax on result for the year 787 870 Adjustment in respect of prior years (39) (109) Total current tax charge 748 761

Deferred tax Origination and reversal of timing differences (76) (162) Changes in tax rates and laws 2 (215) Adjustment in respect of previous periods (7) 117 Total deferred tax (81) (260)

Total tax charge on profit on ordinary activities (Note 6(c)) 667 501

(b) Tax expense included in other comprehensive income Deferred tax Origination & reversal of timing differences 49 70 Changes in tax rates and laws (2) (7) Total tax charge in other comprehensive income 47 63

86 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 6. Income tax (continued) (c) Reconciliation of tax charge

The total tax assessed for the year is lower (2014: higher) than the standard rate of corporation tax in the UK of 20.75% (2014: 22.5%). The differences are explained below: 2015 2014 £’000 £’000 Profit on ordinary activities before tax 12,921 2,125

Profit multiplied by standard rate of corporation tax in the UK of 20.75% (2014: 22.5%) 2,681 478 Effects of: Deferred tax not provided (5) (16) Expenses not deductible for tax purposes and income not taxable (1,965) 247 Tax rate changes 2 (214) Adjustments to tax charge in respect of previous period – corporation tax (39) (109) Adjustments to tax charge in respect of previous period – deferred tax (7) 117 Effects of other tax rates/credits - (2) Total tax charge for year (Note 6(a)) 667 501

Changes to the UK corporation tax rates were announced in the Chancellor's Budget on 8 July 2015. These include reductions to the main rate to reduce the rate to 19% from 1 April 2017 and to 18% from 1 April 2020. As the changes had not been substantively enacted at the balance sheet date their effects are not included in these financial statements. The overall effect of these changes, if they had applied to the deferred tax balance at the balance sheet date, would be to reduce the deferred tax liability by approximately £148k and decrease the tax expense for the period by approximately £148k. 7. Profit of the Company The Company has not presented its own income statement, 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 £7.3m and £6.5m (2014: £3.8m and £3.3m) respectively. 8. Intangible fixed assets Hospitality Catering Group Rights Total £’000 £’000 Costs At 1 July 2014 -- Additions 3,260 3,260 At 30 June 2015 3,260 3,260

Accumulated amortisation At 1 July 2014 -- Charge for the year 225 225 At 30 June 2015 225 225

Net book value At 30 June 2015 3,035 3,035 At 30 June 2014 --

The intangible asset referred to above arose in the year from the hospitality and catering rights purchased from Compass as part of the formation of MSEL.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 87 Notes to the financial statements for the year ended 30 June 2015

9. 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 2014 138,802 3,301 1,687 37,629 3,720 185,139 39,819 Additions - 64 --3,397 3,461 375 At 30 June 2015 138,802 3,365 1,687 37,629 7,117 188,600 40,194 Accumulated depreciation At 1 July 2014 52,827 1,216 1,162 - 2,678 57,883 1,473 Charge for the year 3,973 291 105 - 763 5,132 188 At 30 June 2015 56,800 1,507 1,267 - 3,441 63,015 1,661

Net book value At 30 June 2015 82,002 1,858 420 37,629 3,676 125,585 38,533 At 30 June 2014 85,975 2,085 525 37,629 1,042 127,256 38,346

Included in the cost of the stadium are cumulative capitalised interest costs of £4.6m (2014: £4.6m). The depreciation charge includes an amount of £0.1m (2014: £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. All land and buildings held by the Group within tangible fixed assets are freehold assets. 10. 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 2015 and 30 June 2014; as at 30 June 2015, the Company also held a £16.5m equity investment in Millennium Stadium Experience Limited (2014; £nil ). All 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 2015 were: Company Principal activity Country of % holding of incorporation ordinary shares Millennium Stadium plc Stadia operation United Kingdom 100% Millennium Stadium Experience Limited Hospitality and catering provision United Kingdom 83.5% 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 Republic of Ireland 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% Great Britain Limited Olympic Sevens competition United Kingdom 33%

The above investments were the same as at 30 June 2014 except for: • the investment in Millennium Stadium Experience Limited was 100%; and • there was no investment in Great Britain Rugby Sevens Limited 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.

88 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 10. Investments (continued) 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. During the year, the Group’s bankers were issued with one share in Millennium Stadium plc (2014; no shares) and this share has the same rights as the shares held by the Company. In addition, 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. 11. Stock Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Goods for resale 672 352 - - Raw materials 31 - - - 703 352 - -

The amount of stock recognised as an expense in the period is £1.6m (2014: £0.5m)

12. Debtors Amounts due within one year: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Trade debtors 3,761 3,735 2,958 1,588 Loans due from clubs 714 716 714 716 Loans due from Regions 1,300 - 1,300 - Less: provision for impairment of receivables (752) (899) (660) (756) 5,023 3,552 4,312 1,548 Prepayments and other debtors 2,446 4,508 1,537 2,014 7,469 8,060 5,849 3,562

Amounts due after more than one year: Amounts owed by Group undertakings - - 51,010 74,992

7,469 8,060 56,859 78,554

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”).

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 89 Notes to the financial statements for the year ended 30 June 2015

13. Cash at bank and in hand Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Cash balance at bank 3,110 79 3,001 -

14. Creditors Amounts falling due within one year: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Bank loans 12,250 7,832 12,250 7,832 Trade creditors 1,591 3,075 385 1,480 Amounts owed to Group undertakings - - 1,980 8 Corporation tax 473 1,887 290 1,585 Other tax and social security 400 260 333 195 Other creditors 634 202 202 202 Accruals and deferred income 14,697 15,502 11,723 12,261 30,045 28,758 27,163 23,563

Amounts falling due after more than one year: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Bank loans 5,050 17,135 5,050 17,135 Debentures 37,610 37,605 37,610 37,605 Derivative financial liability (note 15) 233 214 233 214 42,893 54,954 42,893 54,954

Maturity analysis: Bank loans are due: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Within one year 12,250 7,832 12,250 7,832 Between one and two years 1,250 2,890 1,250 2,890 Between two and five years 3,800 4,245 3,800 4,245 In more than five years - 10,000 - 10,000 17,300 24,967 17,300 24,967

90 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 14. Creditors (continued) The principal terms of these loans are set out below: Bank loans Interest and capital repayment terms 2015 2014 £’000 £’000

Revolving credit facility (new) LIBOR plus 2.95%, loan repayable on maturity date 11,000 - Revolving credit facility (old) LIBOR plus 2.50%, loan repayable on maturity date - 5,000 Facility A LIBOR plus 2.95%, loan repayable in instalments by 2019 5,000 - Term loan (old) LIBOR plus 2.00%, loan repayable in instalments by 2021 - 9,967 Facility B – Regions Loan LIBOR plus 2.95%, loan repayable in instalments by 2020 1,300 - Tranche C Interest and capital payable only in the event of default or - 10,000 certain other defined events 17,300 24,967

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 2015 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. Debentures and the Tranche C loan have been treated as public benefit entity concessionary loans as they were received below the prevailing market rate of interest and for the purpose of furthering the primary objective of the Group. Security provided on bank loans Bank loans totalling £17.3m (2014: £25.0m) are secured by fixed and floating charges over the assets of the Company and certain of its subsidiaries. Borrowing facilities The Group had £9.0m (2014: £12.5m) of undrawn committed borrowing facilities available at 30 June 2015 in respect of which all conditions precedent had been met at that date. Debenture loans are repayable in: Group Group 2015 2014 £’000 £’000

2021 360 360 2024 11,603 13,019 2026 486 486 2027 2,425 2,425 2028 350 350 2030 4,833 4,833 2035 1,768 1,768 2050 15,935 14,527 37,760 37,768 Unamortised issue costs (150) (163) 37,610 37,605 All debenture loans are unsecured and bear no interest. During the year, the Group invited debenture holders of the 410, 420, 430 and 440 Series to extend the redemption date of their debenture from 2024 to 2050. Some 179 debenture holders involving some 327 debenture seats accepted this invitation resulting in the redemption of some £1.4m being extended from 2024 to 2050.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 91 Notes to the financial statements for the year ended 30 June 2015

14. Creditors (continued) Bank and debenture loans repayable by instalments wholly or partly after 5 years Bank loans, with a total value of £17.3m (2014: £25.0m), are repayable wholly or partly from the balance sheet date by instalments. Of these amounts, £nil (2014: £10.0m) is repayable after five years. Debenture loans, with a total value of £37.6m (2014: £37.6m), are repayable wholly from the balance sheet date. Of these amounts, £37.6m (2014: £37.6m) is repayable after five years. 15. 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 2015 the Group had no material foreign exchange risk (2014: £nil). • Interest rate risk – operations are financed through a mixture of bank borrowings and concessionary 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. • Liquidity risk – the Group’s policy is to maintain a balance between continuity of funding and flexibility. As at 30 June 2015, 31% (2014: 24%) of borrowings were due to mature within five years, some 36% (2014: 27%) were due to mature between five years and fifteen years and some 33% (2014: 49%) were due to mature after fifteen years. The Group and Company have the following financial instruments: Note Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000 Financial assets that are debt instruments measured at amortised cost: • Trade debtors and loans to clubs/Regions 12 5,023 3,552 4,312 1,548 • Other debtors 12 2,446 4,508 1,537 2,014 • Amounts owed by Group undertakings 12 - - 51,010 74,992 7,469 8,060 56,859 78,554

Financial assets measured at fair value through other comprehensive income: • Derivative financial instruments 315 59 315 59

Financial liabilities measured at amortised cost: • Bank loans 13 17,300 24,967 17,300 24,967 • Trade creditors 13 1,591 3,075 385 1,480 • Amounts owed to Group undertakings 13 - - 1,980 8 • Other creditors 13 634 202 202 202 19,525 28,244 19,867 26,657

Financial liabilities measured at fair value through other comprehensive income: • Derivative financial instruments 233 214 233 214

92 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 15. Financial instruments (continued) Derivative financial instruments – Forward contracts The Group enters into forward foreign exchange contracts to mitigate the exchange rate risk for certain future foreign currency receivables. The forward foreign exchange contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward foreign exchange rates. The fair value of the forward foreign exchange currency contracts is £0.3m (2014: £0.1m). Cash flows on forward foreign exchange contracts are received annually. During 2015, a hedging gain of £0.3m (2014: £0.1m gain) was recognised in other comprehensive income for changes in the fair value of the forward foreign exchange contracts and £0.1m (2014: £nil) was reclassified from the hedge reserve to profit and loss reserve. Derivative financial instruments – Interest rate swaps The Group has entered into an interest rate swap to receive interest at LIBOR and pay interest between a floor and cap of 2.1% and 3.75% respectively. The swap is based on a current principal amount of £9.5m, equating to approximately 55% of the principal amount of the Group’s sterling bank loan facilities, and matures in 2018. The instrument is used to hedge the Group’s exposure to interest rate movements on the bank loan facility. The hedging arrangement fixes the total interest payable on a proportion of the sterling bank loan to within a range of 2.1% to 3.75%. The fair value of the interest rate swap is £0.2m (2014: £0.2m). Cash flows on interest rate swaps are paid quarterly until 2018. Cash flows on the term loans are paid quarterly until 2019. Cash flows on the revolving credit facility are paid in line with the draw period. During 2015, a hedging loss of £nil (2014: £0.3m gain) was recognised in other comprehensive income for changes in the fair value of the interest rate swap and £nil (2014: £nil) was reclassified from the hedge reserve to profit and loss reserve. At 30 June 2015 the notional principal amounts of derivatives relating to interest rate cap and collar agreements were £9.5m and are analysed as follows:

Instrument Notional Fair market Maturity amount value date £’000 £’000 Interest rate cap 3.75% 9,500 9 30 June 2018 Interest rate floor 2.10% 9,500 (242) 30 June 2018

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 Maturity amount value 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 During the years to 30 June 2015 and 30 June 2014, the Group’s derivatives qualified for hedge accounting under FRS102. These instruments are carried at fair value as analysed below: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000 Interest rate cap 9 34 9 34 Interest rate floor (242) (248) (242) (248) Derivative financial liability (233) (214) (233) (214)

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 93 Notes to the financial statements for the year ended 30 June 2015

16. Accruals and deferred income Grants Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

At start of year 37,459 39,307 - - Amounts repaid (100) (100) - - Amounts received 1,720 - - - Released to the income statement (1,858) (1,748) - - At end of year 37,221 37,459 - -

During the year some £1.9m (2014: £1.7m) was released to the income statement 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 £27.2m (2014: £28.4m). This grant will be released to the income statement as follows: Group Group Company Company 2015 2014 2015 2014 £’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 21,183 22,379 - - 27,163 28,359 - -

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. 17. Provisions for liabilities Deferred tax The movement on deferred tax is as follows: Group Group Company Company 2015 2014 2015 2014 £’000 £’000 £’000 £’000

Liability/(asset) at start of the year 1,471 1,668 (138) (199) (Released)/charged to the profit and loss account (74) (377) (2) 14 Tax on components of other comprehensive income 47 63 47 63 Adjustment in respect of previous years (7) 117 (7) (16) At end of the year 1,437 1,471 (100) (138)

Deferred tax provided/(recognised) is made up as follows: Accelerated capital allowances 1,539 1,612 - - Derivative financial instruments (26) (73) (26) (73) Other timing differences (76) (68) (74) (65) 1,437 1,471 (100) (138)

The Group’s net deferred tax liability expected to reverse in the next 12 months is £79k. This primarily relates to the reversal of timing differences on fixed assets offset by expected tax deductions on short term timing differences (including amounts deductible for tax purposes on a paid basis). The Company’s net deferred tax asset expected to reverse in the next 12 months is £74k. This primarily relates to the reversal of timing differences on amounts deductible on a paid basis.

94 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 18. 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 334 (2014: 335). 19. Contingent liabilities Group The Group had the following contingent liabilities as at 30 June 2015: ● 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 £1.0m (2014: £1.2m). Company The Company had the following contingent liabilities as at 30 June 2015: • The Company has guaranteed the performance of one of its subsidiaries under the terms of grant arrangements amounting to £37.2m (2014: £37.5m). ● 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 £1.0m (2014: £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. It is currently impracticable to make any additional disclosures in relation to the estimated financial effects, their timing and the possibility of any reimbursement. 20. Commitments Capital commitments of the Group: 2015 2014 £’000 £’000

Authorised and contracted: - 3,128

The Company had no capital commitments at 30 June 2015 or 30 June 2014. Operating lease commitments: 2015 2014 £’000 £’000 Land and buildings; within • One year 385 385 • One to two years 385 385 • Two to five years 1,155 1,155 • More than five years 4,528 4,913

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 (2014: £0.7m). There are no material amounts included in creditors in respect of these pension costs in 2015 or 2014.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 95 Notes to the financial statements for the year ended 30 June 2015

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

2015 2014 £’000 £’000 EBITDA 30,284 27,300 Allocations to affiliated organisations (22,607) (22,471) Exceptional items 10,000 1,822 Depreciation and amortisation (5,357) (4,910) Exceptional depreciation - (194) Release of deferred income 1,858 1,748 Operating profit 14,178 3,295

Non-cash items: Depreciation and amortisation 5,357 4,910 Exceptional depreciation - 194 Release of deferred income (1,858) (1,748) Exceptional item (10,000) - (6,501) 3,356 Working capital adjustments: Increase in stock (351) (164) Decrease/(increase) in debtors 591 (1,989) (Decrease)/increase in creditors (1,717) 3,433 (1,477) 1,280 Net cash inflow from operating activities 6,200 7,931

23. Reconciliation of net cash flow to movement in net debt 2015 2014 £’000 £’000

Increase /(decrease) in cash in the year 3,031 (712) Cash (inflow)/outflow from movement in debt (2,325) 5,337 Non-cash changes 9,987 (13) Decrease in net debt during the year 10,693 4,612 Net debt at the beginning of the year (62,493) (67,105) Net debt at the end of the year (51,800) (62,493)

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

At 1 July 2014 79 (7,832) (17,135) (37,605) (62,493) Cashflow 3,031 (4,418) 2,085 8 706 Non-cash changes --10,000 (13) 9,987 At 30 June 2015 3,110 (12,250) (5,050) (37,610) (51,800)

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)

96 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 25. Related party transactions In accordance with the exemption afforded by paragraph 33.1A from the provisions of FRS102, ‘related party transactions’, there is no disclosure in these financial statements of transactions with entities that are part of the Group. See note 5 for disclosure of the directors’ remuneration and key management compensation. 26. Transition to FRS102 FRS102 has been early adopted by the Group at 30 June 2015. This is the first year that the Group and Company have presented their results under FRS102. The last financial statements prepared under previous UK GAAP were for the year ended 30 June 2014. The date of transition to FRS102 was 1 July 2013. Set out below are the changes in accounting policies which reconcile the profit for the financial year ended 30 June 2014 and the total equity as at 1 July 2013 and 30 June 2014 between UK GAAP as previously reported and FRS102. Transition exemptions The Group has taken the transition exemption under paragraph 35.10(t) of FRS102 in respect of applying hedge accounting to a hedging instrument which exists at the date of transition. Description of changes in accounting policies made on first-time adoption of FRS102 are as follows: A. Hedge accounting The Group did not apply hedge accounting under FRS26 of UK GAAP. As a result, derivatives were recognised and measured at fair value with the movements recognised in the profit and loss account. As a first-time adopter of FRS102, the Group will perform hedge accounting in accordance with Section 12 of FRS102 which is subject to less stringent and burdensome compliance requirements than those under UK GAAP. The Group will apply hedge accounting for both the foreign exchange and interest rate hedges and also designate both as cash flow hedges. The movement in the fair value of these derivatives, which is considered to be effective, is recognised in other comprehensive income as a result of applying hedge accounting. The ineffective movements are recognised in the income statement. B. Public benefit entity concessionary loans (including debentures) The Group, as a public benefit group, has elected to recognise off-market rate loans as concessionary loans and account for them as per Section 34 of FRS102. Under Section 34 of FRS102, concessionary loan arrangements are initially measured at the amount received or paid. In subsequent years, the carrying amount of concessionary loans in the financial statements is adjusted to reflect any accrued interest payable or receivable. To the extent that a loan that has been made is irrecoverable, an impairment loss shall be recognised in the income statement. Under FRS26 these loan arrangements were recognised at fair value. This fair value was deemed equal to the amount received and therefore no adjustments were necessary on transition. Reconciliation of profit or loss for the year Note Group Company 30 June 2014 30 June 2014 £’000 £’000

Profit for the financial year as previously reported under UK GAAP 1,830 3,548 Cash flow hedges • Reclassification to other comprehensive income (i) (257) (257) • Deferred tax adjustment – financial derivatives (ii) 51 51 Profit for the financial year under FRS102 1,624 3,342

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 97 Notes to the financial statements for the year ended 30 June 2015

Reconciliation of other comprehensive income Note Group Company 30 June 2014 30 June 2014 £’000 £’000

Other comprehensive income for the financial year as previously -- reported under UK GAAP

Cash flow hedges • Reclassification of fair value gain on interest rate hedge (i) 257 257 • Reclassification of fair value gain on foreign exchange hedge (ii) 59 59 • Tax on other comprehensive income (i) (63) (63) Other comprehensive income for the financial year under FRS102 253 253

Reconciliation of equity Group Company Note 1 July 2013 30 June 2014 1 July 2013 30 June 2014 £’000 £’000 £’000 £’000 Total reserves as previously reported under 11,287 13,117 35,045 38,593 UK GAAP Cash flow hedges • Opening balance adjustment of deferred tax (ii) - (12) - (12) asset in respect of foreign exchange financial derivative • Fair value movement in foreign exchange (ii) - 59 - 59 financial derivative previously not recognised Total reserves as reported under FRS102 11,287 13,164 35,045 38,640

Notes to the reconciliations Financial instruments The derivative instruments utilised by the Group are interest rate swaps and foreign currency forward contracts. Under UK GAAP, whilst these derivatives were commercially effective hedges, they did not qualify for hedge accounting. Therefore, the movement in the hedging instruments was recognised in the profit and loss account. On transition to FRS102, the Group has adopted hedge accounting for its exposure to both interest rate and foreign exchange risks. As per paragraph 12.23(b) of FRS102, the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income. (i) Under FRS26, the Group recognised the fair value movement in interest rate swap amounting to £257,000 in the Income Statement but with transition to FRS102 and on adoption of cash flow hedge accounting the movement needs to be recognised in other comprehensive income. Correspondingly, this gives rise to a cash flow hedge reserve, the separate component of equity been accounted for the total change in fair value of £257,000. Tax of £51,000 was also reclassified from the income statement to the statement of other comprehensive income. (ii) The movements in foreign exchange hedging instruments, designated as cash flow hedges, should be recognised in reserves rather than the profit and loss account under FRS102. Accordingly, the cumulative gain of £59,000 is recognised as a hedging reserve with the corresponding hedging instrument recognised as other financial asset in balance sheet. This adjustment has also prompted a decrease to the opening deferred tax asset at the transition date of £12,000 and a corresponding decrease in the profit and loss account.

98 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Independent auditors’ report to the members of The Welsh Rugby Union Limited

Report on the financial statements which the financial statements are prepared is consistent with the financial statements. Our opinion Other matters on which we are required to report by In our opinion, The Welsh Rugby Union Limited’s group exception financial statements and company financial statements (the “financial statements”): Adequacy of accounting records and information and explanations received • give a true and fair view of the state of the group’s and of the company’s affairs as at 30 June 2015 and Under the Companies Act 2006 we are required to report of the group’s profit and cash flows for the year then to you if, in our opinion: ended; • we have not received all the information and • have been properly prepared in accordance with explanations we require for our audit; or United Kingdom Generally Accepted Accounting Practice; and • adequate accounting records have not been kept by the company, or returns adequate for our audit have • have been prepared in accordance with the not been received from branches not visited by us; or requirements of the Companies Act 2006. • the company financial statements are not in What we have audited agreement with the accounting records and returns. The financial statements comprise: We have no exceptions to report arising from this • the Consolidated and Company balance sheets as at responsibility. 30 June 2015; Directors’ remuneration • the Consolidated income statement and Consolidated statement of comprehensive income for Under the Companies Act 2006 we are required to report the year then ended; to you if, in our opinion, certain disclosures of directors’ remuneration specified by law are not made. We have no • the Consolidated statement of cash flows for the year exceptions to report arising from this responsibility. then ended; • the Consolidated and Company statement of Responsibilities for the financial statements and the changes in equity for the year then ended; and audit • the notes to the financial statements, which include Our responsibilities and those of the directors a summary of significant accounting policies and As explained more fully in the Statement of directors’ other explanatory information. responsibilities set out on page 70, the directors are The financial reporting framework that has been applied responsible for the preparation of the financial statements in the preparation of the financial statements is applicable and for being satisfied that they give a true and fair view. law and United Kingdom Accounting Standards (United Our responsibility is to audit and express an opinion on the Kingdom Generally Accepted Accounting Practice), financial statements in accordance with applicable law and including FRS 102 “The Financial Reporting Standard International Standards on Auditing (UK and Ireland) (“ISAs applicable in the UK and Republic of Ireland”. (UK & Ireland)”). Those standards require us to comply with In applying the financial reporting framework, the directors the Auditing Practices Board’s Ethical Standards for have made a number of subjective judgements, for Auditors. example in respect of significant accounting estimates. In This report, including the opinions, has been prepared for making such estimates, they have made assumptions and and only for the company’s members as a body in considered future events. accordance with Chapter 3 of Part 16 of the Companies Opinion on other matter prescribed by the Act 2006 and for no other purpose. We do not, in giving Companies Act 2006 these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report In our opinion, the information given in the Strategic is shown or into whose hands it may come save where Report and the Directors’ Report for the financial year for expressly agreed by our prior consent in writing.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 99 Independent auditors’ report to the members of The Welsh Rugby Union Limited

What an audit of financial statements involves We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: • whether the accounting policies are appropriate to the group’s and the company’s circumstances and have been consistently applied and adequately disclosed; • the reasonableness of significant accounting estimates made by the directors; and • the overall presentation of the financial statements. We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements. We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Mark Ellis (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Cardiff 25 August 2015

100 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Welsh Rugby Union Governance year ended 30 June 2015

Patron and Office Bearers: Executive: Patron Roger Lewis (Group Chief Executive) Her Majesty Queen Elizabeth II Non-executive members: Vice Patron His Royal Highness The Duke of Cambridge Kenneth Hewitt (vice non-executive chairman) President Mal Beynon Dennis Gethin Anthony Buchanan (appointed on 19 October 2014) Governance of Welsh Rugby (resigned on 19 October 2014) Martin Davies The primary objective of the Group is to promote, foster, Geraint Edwards encourage, control and improve the game of rugby Gordon Eynon throughout Wales. The Board of The Welsh Rugby Union Limited (the “Board”) is responsible for ensuring that the Humphrey Evans primary objective is managed, which it does through the Brian Fowler Welsh Rugby Union Group Executive Board. The Board Roy Giddings (resigned on 19 October 2014) comprises of nineteen non-executive Directors and one Tim Griffin (appointed on 1 May 2015) - executive Director. Of the nineteen non-executive independent Directors, seventeen are elected and two are appointments Richard Gwynn (resigned on 27 March 2015) made by the Board. The non-executive Chairman of the Russell Howell Board is elected from the non-executive Directors. Anthony John The Board of Directors of The Welsh Rugby Union Alan Jones Limited Alwyn Jones Non-executive chairman: Aurwel Morgan (resigned on 19 October 2014) Gareth Davies (appointed to the Board on 19 Chris Morgan (appointed on 19 October 2014) October 2014 and appointed as non- Aileen Richards (appointed on 1 May 2015) - executive Chairman on 21 October independent 2014) Phil Thomas (appointed on 15 April 2015) David Pickering (resigned on 19 October 2014) Ray Wilton David Young (appointed on 19 October 2014) Company Secretary Gareth Williams

Welsh Rugby Union Group – Executive Board Chairman: Roger Lewis (Group Chief Executive) Executive: Rhodri Lewis Head of Legal Affairs Josh Lewsey Head of Rugby Craig Maxwell Head of Group Sales and Marketing Julie Paterson Head of Group Compliance Steve Phillips Group Finance Director John Williams Head of Communications

A club operations workshop Mark Williams Stadium Manager

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 101 Welsh Rugby Union governance year ended 30 June 2015

The new non-elected Board members Tim Griffin and Aileen Richards

Board Committees 2014), Richard Gwynn (until 27 March 2015), Phil Thomas (from 15 April 2015), Anthony John, Alwyn Jones and During the year, the Board operated three principal sub- David Young (from 21 October 2014). In addition to Josh committees to assist in its business. The role and Lewsey, non-Board members of the Rugby Committee membership of the sub-committees were as follows: included Mike Rein, Ian Parker, Sophie Bennett (until 31 The Finance Committee , chaired by Martin Davies, July 2014), Caroline Spanton (from 1 January 2015), comprised Gareth Davies (from 21 October 2014), David Martyn Ryan, Jason Lewis, Gethin Watts, Adrian Evans and Pickering (until 19 October 2014), Kenneth Hewitt, Roger . The Rugby Committee is responsible for Lewis, Humphrey Evans, Gordon Eynon (until 21 October the development of the game at all levels, including age 2014) and Steve Phillips. The Finance Committee is groups, coaching and referees. responsible for all financial matters of the Group, other Development of Corporate Governance than dealing with the Group’s auditors. Both the Board and the Executive Board remain committed The Regulatory Committee , chaired by Mal Beynon, to the continuing development of governance structures, comprised Geraint Edwards, Gordon Eynon (from 21 in order to meet the evolving needs of the game of rugby October 2014), Brian Fowler, Russell Howell, Chris Morgan union. (from 21 October 2014), Aurwel Morgan (until 19 October 2014), Ray Wilton and Julie Paterson. The Regulatory The Board and the Executive Board acknowledge the value Committee is responsible for disciplinary matters and the of the principles of good governance. The Group is management of all leagues and cup competitions in committed to adopting the principles of best practice in operation. corporate governance. The Group will ensure that each member of the Board undergoes training in the role of the The Rugby Committee , chaired by Alan Jones, comprised non-executive Director to be delivered by an appropriate Roy Giddings (until 19 October 2014), Gerald Davies (until organisation (such as the Institute of Directors). The Group is 19 October 2014), Anthony Buchanan (from 21 October committed to further training and development of the Board.

102 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Children enter a WRU competition

During the year, the completion of a two year review into In addition, the Board considers the recommendation of the governance of Welsh rugby, that was chaired by Sir the Board’s standing sub-committees, whose Robert Owen a distinguished High Court Judge, responsibilities relate to Finance, Regulatory and Rugby as culminated in the appointment of two new non-elected explained above. independent non-executive directors to the Board, Appointments and Remuneration Panel including the first woman Board member. Tim Griffin and Aileen Richards joined the Board with strong corporate The Appointments and Remuneration Panel advises the backgrounds as leading executives for multi-national Board on the remuneration and terms and conditions of companies. the Group Chief Executive and the Executive Board. The panel consists of the Chairman of the Board, the Vice- Board and Executive Board Chairman of the Board and the three Chairs of the There is a clear division of responsibility between the role standing sub-committees: Finance, Rugby and Regulatory. of non-executive Chairman and Group Chief Executive. The Committee relies on expert independent professional There is a detailed limit of authority protocol in place for advice when deemed necessary. both the Board and the Executive Board. All Executive During the year, the Panel invited Professor Laura Board members have detailed job descriptions in addition McAllister (Chair of Sports Wales) to assist it during the to limits of authority. appointment of the non-elected independent non- The Board meets on a monthly basis and considers all executive Directors. In addition, during the year the Panel matters under its terms of reference which include the invited Aileen Richards and Nigel Short (Chairman of development and monitoring of the Group’s strategic plan, Scarlets Regional Limited) to assist it during the allocation of financial resources, reviewing the appointment of the new Group Chief Executive. performance of the Group Chief Executive and Executive Board and approval of annual budgets.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 103 Welsh Rugby Union governance year ended 30 June 2015

European Professional Club Rugby, European Rugby Cup Limited, British Lions Limited and Celtic Rugby Limited, some of whom have a policy of financially compensating the representatives serving on these bodies. Strategic Plan During the year, the Group updated its strategic plan to create a roadmap for the years ahead. This update builds on the previous five year rolling strategic and financial plan. The work on the updated plan involved close liaison between the Executive Board and the Board. The updated plan will highlight strategic priorities and ensure all operational structures and re-investment are committed to achieving the declared aims and objectives of the Group. The evaluation process has confirmed that the three key strategic pillars of the Group are community rugby, elite rugby and the Millennium Stadium. The process of upgrading the plan continues to ensure all the Group’s operations comply with and support the agreed strategic priorities. Registered office and advisers Registered office Millennium Stadium Westgate Street, Cardiff CF10 1NS Independent auditors PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors The RBS 6 Nations trophy at the Stadium One Kingsway, Cardiff The Audit Panel 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 to 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 Group’s auditors. CF10 1DY Remuneration of the Board Bankers Under the Group’s remuneration policy, no fees are Barclays Bank PLC payable to non-executive Board members, other than the 3rd Floor non-executive Chairman who receives an annual fee of Windsor Court £50,000. 3 Windsor Place, In addition, the Board are represented on other rugby Cardiff bodies including World Rugby, Six Nations Rugby Limited, CF10 3ZL

104 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Welsh Rugby Union governance Board of Directors for the period ended 30 June 2015

Non Executive Chairman Gareth Davies Joined the Board on 19 October 2014 as a national representative and was elected as Chairman on 21 October the same year. He is also Chairman of the Board of the Millennium Stadium plc, a member of the World Rugby Council, the Six Nations Committee, the British and Irish Lions and EPCR. He also chairs the Group Appointments and Remuneration Panel and is a member of the Finance Committee. A former international fly half and British and Irish Lions tourist in 1980, he earned 21 caps for his country and captained Wales on five occasions. He has held senior executive positions with the Newport Gwent Dragons, CBI Wales, BBC Wales, Cardiff RFC, S4C, the Sports Council for Wales, the Royal Mail and the Welsh Development Agency – where he headed the Sydney, Australia office – and is a former Dean of the Carnegie Faculty at Leeds Metropolitan University

Executive Roger Lewis Group Chief Executive Appointed as Group Chief Executive in 2006 and also represents the Group on the boards of the British and Irish Lions, 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. Roger has also held and holds a number of non-executive posts in the public, private and voluntary sectors.

Non Executive Vice Chairman Ken Hewitt Joined the Board in 1993 and represents District A. He has represented the Group on the Board of the ERC Ltd, World Rugby and the Welsh Youth Rugby Union. He is currently a member of the Millennium Stadium plc 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 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 Monmouthshire League. He is a retired head teacher.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 105 Welsh Rugby Union governance Board of Directors for the period ended 30 June 2015

Mal Beynon Joined the Board in 1997 and represents District A. He is Chairman of the Regulatory Committee, a member of the Millennium Stadium plc 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.

Anthony Buchanan Joined the Board on 19 October 2014 as a national representative. He is a former Wales prop forward, who won five caps, including during the first Rugby World Cup in 1987. He played over 230 times for Llanelli rugby club, before later becoming Scarlets team manager in 1991 seeing the club through the transition from amateur to professional rugby and most recently Llanelli RFC Director of Rugby in 2008, during over 30 years of service. He was recently appointed chairman of the SSE SWALEC National League Review Working Party and is a WRU representative with World Rugby. He originally worked as a colliery fitter before changing roles for a management position in a chemical company.

Martin Davies Joined the Board in 2003 as a national representative. He also currently serves on the Millennium Stadium plc Board and is Chairman of the Finance Committee, a member of the Appointments and Remuneration Panel, Chairman of the Audit Panel, a Trustee of Millennium Stadium Chartitable Trust and an executive member of the Committee (In June 2014 FIRA-AER changed its name to Rugby Europe). 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 PriceWaterhouseCoopers, 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 Board in 1993 and represents District E. He also currently serves on the Millennium Stadium plc Board. He is Chairman of the Disciplinary Committee and was 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.

106 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Humphrey R Evans Joined the 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 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 Regulatory Committee. He is a former schoolmaster and currently runs a farm in .

Brian Fowler Joined the 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. Now retired, he was a local government officer for County Council, having previously worked for the National Coal Board.

Tim Griffin Joined the Board on 29 April 2015 as an non-elected independent non-executive director. He is CEO of Dell UK, the global technology leader. His career has spanned senior management roles in a number of major companies including PriceWaterhouseCoopers, NCR and the BBC. Before taking up his UK role, Griffin worked in Singapore and Australia in a variety of senior positions at Dell. An MBA alumnus of the University of Wales College, Cardiff, Griffin has roots in Wales and is an avid rugby fan having played No 8 for Newbridge as well as serving as captain of Cross Keys and Monmouthshire U23s. He also represented Cardiff University, Wales Universities and British Universities in the back row.

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 107 Welsh Rugby Union governance Board of Directors for the period ended 30 June 2015

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

He is a Group 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 Board. He is a member of the Regulatory Committee. He is a retired haulage contractor.

Anthony John Re-joined the Board in 2012 and represents District G. He sat on the League Management Committee from 1993 to 2003. Anthony is a member of the Rugby 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 a site manager for Dwr Cymru Welsh Water for 33 years.

Alan Jones Joined the Board in 2003 and represents District D. He chairs the Rugby Committee, is a member of the Appointments and Remuneration Panel and was formerly a member of the 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 21 years. 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.

Alwyn Jones Alwyn joined the Board in 2012 and represents District J. He is a member of the Rugby 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 spent his career working for HMRC.

108 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 Welsh Rugby Union governance Board of Directors for the period ended 30 June 2015

Chris Morgan Joined the Board on 19 October 2014 and represents District D. He played rugby for Glyncorrwg, Tonmawr and the Royal Marines, before moving into the coaching environment where his main background is in strength and conditioning. He has worked in this field at Premiership level with Swansea and Aberavon, spent three years in the regional set up with the Ospreys senior squad and played a significant part in the management and coaching set up of the Wales Deaf Rugby team which won the World Cup in New Zealand in 2002. He is a former Senior Non Commissioned Officer in the Royal Marine Commandos with 18 years' experience, holding some very high profile appointments during a distinguished career.

Aileen Richards Joined the Board on 29 April as a non-elected independent non-executive director. She was based in the USA as the Executive Vice President and Vice President of People and Organisation for Mars Incorporated, the global petcare, chocolate, gum, confectionery and drinks business. She grew up outside Cardiff and holds a BSc Honours degree in business studies. She spent her 30-year career at Mars working across the management structure in a number of high profile roles in the UK, Belgium and the USA. Now retired, she has returned to live in . She has a declared passion for Welsh rugby and is a debenture holder at the Millennium Stadium.

Phil Thomas Joined the Board on 15 April 2015 and represents District E. He is Chairman of Vardre RFC. From Clydach he is a former Wales Schools U16 international and played youth rugby for RFC before joining Vardre where he became Club Secretary, Vice Chairman and then Chairman in 2012. He works for the City and County of Swansea Council in the benefits division.

Ray Wilton Joined the Board in 1998 and represents District C. He is a member of theRegulatory 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 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.

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David Young Joined the Board on 19 October 2014 and represents District B. He played for the youth and senior teams of Llandaff North and, following injury, joined the committee, latterly as the Rugby Secretary, and was awarded Life Membership after 23 years of service. He is currently a selector, Vice Chairman and Competition Secretary for East District. He is a retired Chartered Electrical Engineer and former Design and Construction Manager for Cardiff County Council.

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

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Roger Lewis Group Chief Executive Appointed as Group Chief Executive in 2006 and also represents the Group on the boards of the British and Irish Lions, 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. Roger has also held and holds a number of non-executive posts in the public, private and voluntary sectors.

Rhodri Lewis Head of Legal Affairs Rhodri Lewis joined the 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.

Josh Lewsey Head of Rugby The England, British and Irish Lions and London Wasps multiple trophy winning international joined the 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 PriceWaterhouseCoopers 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.

Craig Maxwell Head of Group Sales and Marketing Craig Maxwell became the Head of Group Sales and Marketing of the Group in 2010 after joining from 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 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.

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

Since joining the 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 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.

Steve Phillips Group Finance Director Steve Phillips joined the 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 , 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.

John Williams Head of Communications John Williams joined the 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.

Mark Williams Stadium Manager Mark Williams was appointed as Stadium Manager for the Group in October 2013. He joined the 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 Northern Ireland, 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 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.

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Ray Williams ideas and strategy that helped Wales dominate the (25 August 1927 – 3 December 2014) northern hemisphere game in the 1970s. He was named a Fellow of the National Association of Sports Coaches in Born in Bangor, north Wales, Ray went to Loughborough 1989, elected to the UK Coaching Hall of Fame in 2002 College to study Physical Education in 1944 and undertook and was awarded an honorary BSc by Loughborough a Teacher Training course there in 1951. From there he University in 2009. went to work for the Central Council for Physical Recreation as a technical officer in the Midlands. He Williams was appointed WRU centenary officer in 1980 played rugby for London Welsh, Northampton, Moseley, and then succeeded the long-serving Bill Clement as East Midlands and North Wales and was also a Wales secretary of the WRU. In 2014 Williams was presented trialist. with the prestigious Vernon Pugh Award for Distinguished Service in recognition of the contribution he has made to Coaching was always his passion and he pioneered the game throughout his lifetime. He was also a WRU fundamental and far reaching developments to rugby in Board Member (1993-97), IRB Board Member (1993- Wales and around the world by helping introduce 1997), Chairman of the Lions committee (1997) and organised coaching structures for the first time. He was Tournament Director of the . He the first coaching organiser of the WRU and it was his was made OBE in 1995 for his services to rugby.

Ray Williams

THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2015 113 Obituaries

Howard Norris Jones was born in Vryburg but grew up in Malmesbury. He (11 June 1934 – 30 January 2015) attended South African College School followed by Stellenbosch University, before moving to England. He was Born in Porth, he won Welsh Schoolboy caps from Porth a Rhodes Scholar and also attended Queens College, County Grammar before heading to St Luke's College, Oxford. He played his club rugby for London Welsh and Exeter to train as a teacher. He played for his home town also represented Middlesex. team, Tylorstown, before switching to Cardiff in 1958. He started in the back row and moved into the second row He retired from the game at the age of 32 to concentrate before establishing himself as a prop. on his job as a merchant banker. Between 1958 and November, 1971, when he played his last game for the club against Oxford University, he played Anthony O’Connor a club record 413 games. He captained Cardiff in the (24 April 1934 - 22 May 2015 ) 1967/68 and 1968/69 seasons. Anthony (Tony) O’Connor won his first of five Welsh caps against South Africa in 1960. He also toured with the He won his first cap in the final game in the 1963 Five British & Irish Lions to South Africa in 1962, playing in ten Nations Championship against France in Paris. Norris, matches, although he did not appear in a Test. then 28, came into the side as the only new cap in a game which Wales lost 5 – 3. He won his next cap in 1966 to Scrum half O’Connor played his club rugby for Aberavon, pack down for the second time against France in a game who he skippered during the 1957/58 season. He played that was won by Wales 9-8 to clinch the title for the for the combined Neath-Aberavon side against Australia second season in a row. in 1957, South Africa in 1961 and New Zealand in 1963.

He made 17 appearances on the British Lions tour in 1966 Born in Neath, O’Connor attended Duffryn Grammar and played in the first three of the four Tests against the School and Bristol University before joining St Edmund Hall, All Blacks in New Zealand. He had one final outing against Oxford where he gained an Oxford Blue, partnering the All Blacks for the Barbarians at Twickenham in 1967. Australian international Ross Shiel in the Varsity match of After retiring from the game he served on the Cardiff RFC 1958. committee and maintained his contact with the game He worked for ICI, then British Steel Company, living in through coaching. He taught at Fitzalan High School in Porthcawl, where in 2005 he became captain of the Cardiff for many years. He was pre-deceased by both his famous Royal Porthcawl Club. wife and son.

Ian Jones (2 March 1940 – 1 June 2015)

The South African-born London Welsh and Wales lock Ian Conin Jones won three Blues for Oxford University against Cambridge, twice faced the All Blacks and won one cap for Wales. Jones qualified for Wales via his grandparents and was selected for the Welsh team to face Ireland in Dublin in 1968. He was one of three London Welsh players in the side along with and John Taylor.

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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