Contents Financial highlights 02 Neges y llywydd/President’s message 04 Chairman’s review 06 Group Chief Executive’s overview 08 Operating and Financial Review Financial review 16 Elite rugby 22 Community rugby 38 Stadium 44 Key performance indicators and business risks 50 Directors’ report 51 Consolidated profit and loss account 54 Consolidated statement of total recognised gains and losses 54 Balance sheets 55 Consolidated cash flow statement 56 Notes to the financial statements 57 Independent auditors’ report 79 Welsh Rugby Union governance 80 Registered office and advisers 83 Obituaries 84 Commercial Partners 88 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2009 1 Financial highlights 60 P&L extract - 2009 & 2008 50 49.4 50.3 40 30 £ ‘m 26.8 24.9 24.5 23.6 20 17.0 15.2 10 7.5 8.4 5.8 4.7 2.2 3.0 0 2009 2008 Year 2009 2008 Turnover EBITDA Operational costs Operating profit before exceptional items Allocations to affiliated organisations Profit before tax & exceptional items Amount remaining to service other costs Analysis of turnover 2% 55 5% 0.2 50 0.8 2.3 3.7 Match income 45 5.2 10.6 40 Competition income 22% 35 9.0 5.6 Commercial income 30 5.0 2009 60% 25 Other event income £ ‘m 20 Other income 15 30.2 27.4 11% 10 Government related grants 5 0 2009 2008 Year 2 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2009 Turnover v EBITDA 60 50.3 49.4 50 46.1 43.8 40 £ ‘m 30 23.9 23.6 24.5 21.1 20 2006 2007 Year 2008 2009 EBITDA Turnover EBITDA v Allocations 24.5 23.9 25 23.6 21.1 20 17.0 14.9 15.2 15 £ ‘m 12.1 11.8 11.4 11.0 10 8.3 5 2006 2007 Year 2008 2009 Allocations - Regions Allocations - all EBITDA Allocations 15 12.1 11.4 12 11.0 8.3 9 £ ‘m 6 3.8 2.7 2.9 2.8 3 0.8 1.0 1.0 1.1 0 2006 2007 Year 2008 2009 Regions Community Rugby Semi-professional THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2009 3 Neges y llywydd Un o UchafbWYntiaU fY mlWYddYn oedd croesaWU cYn pennaf oll yn ein hanes hir a balch. Am ddiWrnod i fod yn chWaraeWYr rhYngWladol CYmrU i StadiWm Y MileniWm i GYmro! LlongYfarchiadaU i holl aelodaU’r garfan a’r tîm anrhydeddu eu statWs yn Wir arWyr ein gêm genedlaethol. hyfforddi dan arWeiniad Paul John. Daethant i Wylio dadorchuddio byrddau Wal sy’n cynnwys TrWY gYdol Y flWYddYn gWYliais holl gemaU rhYngWladol enw pob dyn a gynrychiolodd Cymru ar y cae rygbi ar Y CYmrU, gan gYnnWYs Y ddWY ar daith Yr Haf Yng lefel Uchaf er ffUrfio Undeb RYgbi CYmrU Yn 1881. Ar Nghanada a’r UDA lle Y gWelsom Robin McBrYde Yn ddiWedd Y tYmor roeddent Yn ôl gYda’U teUlUoedd i fWYnhaU gWisgo crYs Y prif hYfforddWr am Y tro cYntaf gYdag barbeciW ar y cae sy’n cynrychioli maes eu breuddWydion. anrhydedd, a lle y cadarnhaodd Neil Jenkins yr enw sydd Mae’n deimladWY iaWn i nodi fod TYWYsog Y CanolWYr, ganddo am fod Yr hYfforddWr cicio goraU Wrth i chWaraeWYr BleddYn Williams Yn bresennol ar Y ddaU achlYsUr lle Y Cymru gicio 100%. disgleiriodd ei urddas taWel UWchben popeth. Roedd yn un Cafwyd cyfle i deimlo mwy o falchder cenedlaethol Wrth i o Wir faWrion rYgbi, gWˆr hYnaWs, a hYsbYseb gWYch i rYgbi Gerald DaVies reoli LleWod PrYdain ac IWerddon Yn Ne CYmrU ledled Y bYd. Roedd Yn gYfle hefYd i ffarWelio â’r Affrica ac Wrth i gymaint o Gymru ragori ar y cae ac oddi saWl oedd ar Y prYd Y chWaraeWr rhYngWladol hYnaf o arno. Rwyf yn cynnwys Warren Gatland a Shaun EdWards Gymro oedd yn dal yn fyw, Haydn Tanner. yn Gymry anrhydeddus yn y datganiad hwnnw a gwn eU Mae’r aduniadau hyn yn arWydd o berthynas neWydd ac bod yn rhannu gyda mi y balchder a deimlaf Wrth feddWl agosach rhWng Yr Undeb a’r gWˆYr sY’n Wir lYsgenhadon ein am lWYddiannaU’r flWYddYn ar holl lefelaU’r gêm Yng camp ac fellY ein cenedl. Roedd Y cae lle Y caWsom oll Nghymru. ddiWrnod mor braf gYda’n gilYdd neWYdd groesaWU Mae’n fraint ac anrhYdedd bod Yn LlYWYdd a diolchaf i bob roWndiaU terfYnol cYstadlaethaU CWpan, Plât a BoWlen Un ohonoch am eich cYfraniadaU gWYch Yn chWaraeWYr, SWALEC. UchafbWYnt arall am resYmaU cofiadWY eraill. cefnogWYr, sWYddogion a gWirfoddolWYr. DYlech fod Yn Mae ein camp yn pontio’r gêm broffesiynol elit ac amatur falch o’r hyn a gyflaWnoch ac rWyf yn hyderus, os daliWn ac mae’r cysylltiadau rhyngddynt yn rhai agos a chadarn. ati gyda’n gwaith caled, y dylai’r dyfodol gynnig rhagor o Mae URC Wedi agor llWYbr datblYgU pWYsig sY’n gydnabyddiaeth a llwyddiant. cwmpasu’r gêm meWn ffordd mor effeithlon rhwng clybiaU I gloi hoffWn sôn am Waith amhrisiadWY Ymddiriedolaeth pell ac agos a’r Ganolfan Ragoriaeth neWydd a’n StadiWm ElUsennol RYgbi CYmrU sY’n gWeithio i geisio gWneUd bYWYd ysblennydd: maes ein breuddWydion. Mae’n faes i gemaU ychydig yn fwy cyfforddus i’r chwaraeWyr rygbi hynny sydd rhYngWladol sY’n ffYrnig gYstadleUol a hefYd lle Y gall dros y blynyddoedd Wedi dioddef anafiadau difrifol. Pryd chWaraeWYr o glYbiaU fel Llambed, TreforYs, Rhisga a bynnag yr Wyf yn cyfarfod y chwaraeWyr a anafwyd felly, RhYdaman arddangos eU doniaU. Mae’n gae iddYnt mae eu hagwedd gadarnhaol a’u cariad ysol at rygbi yn hwythau hefyd, ac felly y dylai fod. gWneUd argraff ddofn arnaf, ac mae Wastad Yn Mae fy rôl yn mynd â mi i’r clybiau hynny lle y caf Wastad ysbrydoliaeth bod yn eu cwmni. Mae’r Ymddiriedolaeth yn groeso caredig a chynnes gan bobl dda yr Wyf yn falch o’u ddiolchgar iaWn i’r Undeb am ei chefnogaeth amhrisiadWY galw’n gyfeillion. Mae bob tro’n fraint ac anrhydedd cael ac i’r holl glybiau a mudiadau sy’n cyfrannu i’r achos hynod bod yng ngwir galon rygbi Cymru. haeddiannol hwn. Eleni gallwn sôn gyda balchder am ein tîm D16 a enillodd BencampWriaeth Y Pedair GWlad a thîm Y menYWod a ddaeth â’r Goron Driphlyg gartref ac a drechodd Lloegr am y tro cyntaf. Roedd Yr YmWeliad â DUbai Yn Wirioneddol gofiadWY ac Dennis Gethin roedd Y tU hWnt i’n disgWYliadaU oll pan gododd Lee Beach Llywydd deitl Saith Bob Ochr Y BYd. Mae’n sicr Yn Un o’n gorchestion Undeb Rygbi Cymru 4 THE WELSH RUGBY UNION LIMITED - ANNUAL REPORT 2009 Dennis Gethin President President’s message A highlight of mY Year Was Welcoming the former international players of Wales to the Millennium Stadium in honoUr of their statUs as trUe heroes of oUr national sport. They came to Witness the unveiling of mounted Wall boards which bear the name of everY man to represent Wales at rUgbY at the most senior leVel since the foUndation of the Welsh Rugby Union in 1881. At the end of the season theY Were back With their families to enjoY a barbecUe on the pitch Which represents their field of dreams. It is eXtremelY poignant to note that the Prince of Centres, Bleddyn Williams Was present at both occasions Where his quiet dignity shone like a beacon. A true rugby-great, a fine man and a marVelloUs adVertisement for Welsh rUgbY throUghoUt the World. We also said goodbYe to the then oldest surViVing Welsh international, Haydn Tanner. Prince William at the Stadium These reUnions herald a neW and closer relationship betWeen the Union and the men Who are trUe ambassadors of oUr debut in the main role, and Where Neil Jenkins cemented his sport and therefore, of our nation. The pitch, Where We all reputation as the finest kicking coach With the Welsh players enjoyed such a fine day together, had recently featured the achieVing a 100% record. SWALEC Cup, Plate and BoWl competition finals. Another There Was more national pride to be saVoUred When Gerald highlight for other splendid reasons. OUr sport spans the elite DaVies managed the British and Irish Lions in SoUth Africa professional and amateUr game and the links betWeen those With so manY Welshmen eXcelling on and off the field. I tWo leVels are solid and close. coUnt Warren Gatland and ShaUn EdWards as honorarY The WRU has forged a trUe deVelopment pathWaY Which Welshmen in that statement and I knoW they share With me spans the game so efficientlY from each distant clUb right the pride I feel at the success the year brought us at all leVels through to the neW Centre of Excellence and on to our great of the game in Wales. StadiUm: that field of dreams. It is a field Where internationals It is an honoUr and a priVilege to be YoUr President and I are fiercelY contested and also Where plaYers from clUbs like thank you all for your magnificent contributions as players, Lampeter, Morriston, Risca and Ammanford can displaY their supporters, officials and Volunteers. You should be proud of talents. It is their pitch too and rightly so; it is their field of YoUr achieVements and I am confident that With continUed dreams. hard Work the future should be successful and reWarding. MY role takes me oUt to those clUbs Where I am alWaYs In conclusion I must mention the invaluable Work undertaken Welcomed gracioUslY and WarmlY bY good people I am by the Welsh Rugby Charitable Trust Which endeaVours to proud to call my friends.