This year has seen the Cape Town International Convention Centre pivot its business practices, modify its operations and reignite its passion for innovation in the face of a new and extraordinary environment.
As the art of origami shows us, creativity and transformation go hand in hand, and we have truly embraced this. Like a chameleon, we are at our brightest and strongest when facing a challenge. During these difficult times, we have used all the tools available to us. We have responded to new circumstances with agility and forward-thinking, kept our sights on trends and opportunities and carefully balanced our finances. We have also retained a firm grip on our environmental impact, community contributions and future endeavours.
In that context, our 2019/20 Integrated Annual Report is an expression of our ability to adapt internally, thrive externally and inspire an industry that has, for much of 2020, been dormant.
SCOPE AND PARAMETERS OF THIS REPORT
The Integrated Annual Report details activities that took place during the 2019/20 financial year, which ended on 30 June 2020. This report is being released at the CTICC’s Annual General Meeting (AGM) on 4 March 2021. It is produced on an annual basis, in line with the United Nations Global Compact (UNGC) Index.
2019/20 AT A GLANCE
In the past financial year, we achieved a turnover of R205.3m, even though we were trading normally for just eight and a half months of the year, as Covid-19 restrictions imposed severe limitations on public gatherings from 18 March 2020.
"We have cemented a reputation that sets the global standard for excellence in adaptive and inspirational event hosting."
The CTICC is a world-class venue designed to welcome international and local conferences, exhibitions, trade fairs, banquets, concerts, film and photo shoots and stage productions, amongst many others, to the Mother City. Our complex consists of two buildings, CTICC 1 and CTICC 2, with large auditoria and exhibition halls, state-of-the-art boardrooms and cafés. Thanks to our staff, our robust purpose, mission and values, as well as our commitment to our certifications and partnerships, we are able to provide a wide range of services, delivered seamlessly.
READY FOR EVERY EVENTUALITY
ABOUT THE CTICC
RESPONSIVE TO CHANGE
Covid-19 has changed many things for our world, our country and the CTICC. As a responsible corporate citizen, the CTICC not only had to adapt its business activities to the new restrictions but also sought to assist the community of the Western Cape as effectively as possible. This response has included providing space, facilities and catering for the Hospital of Hope, supplying hall and kitchen space to the Ladles of Love feeding scheme, and helping our Local Community Partners during this tough time through essential donations and activations. We have also pivoted our workplace practices and harnessed the latest technology to ensure we continue as best – and as safely – as we can.
The event industry took a massive knock with Covid-19, and this is reflected in our total number of events held and attendee numbers. In 2019/20, we were able to hold 397 events, a 29.1% decline from last year. The total attendee number was also down – by 46.3% – for the same reason. However, in line with our values of passion, innovation and excellence, and our mission to always exceed expectations, we are always looking for new ways to attract pioneering events through our doors and leave powerful and inspiring legacies once those events are over. None of that has been curbed by Covid-19.
LEAVING POWERFUL LEGACIES
NAVIGATING THE ECONOMIC STORM
The coronavirus exacerbated already negative economic conditions in South Africa. For the first eight and a half months of the financial year, we had achieved good results in terms of revenue, cost reductions and EBITDA. We were on track to exceed the previous year’s results and on target for a revenue of R285m or higher, based on events held and contracted up to that point. But like the rest of the world, our plans for the remaining quarter were disrupted when we were forced to close our doors. We only achieved a revenue of R220.7m, 22.8% below the initial target of R285m. In line with this, we anticipated that we would return an EBITDA loss of R23.6m, but we managed to reduce it to R12.5m (a 46.8% improvement on target) due to vigilant management and the fixed costs associated with operating a convention centre.
Caring for and transforming the futures of our communities continues to be central to our triple-bottom-line approach to ensuring that all areas of our business deliver on our commitment to people, planet and profit. This has never been more true than with the challenges that Covid-19 has brought into our lives. For our communities, represented by our five Local Community Partners (LCPs) and other community organisations we work with, the pandemic has brought considerable additional hardships – rising unemployment, hunger, an increase in gender-based violence and an ever-deepening inequality. To combat this, we focused on vulnerable citizens and children and initiated Covid-19 risk reduction activities. In line with this, our corporate social responsibility (CSR) contribution increased from R1.6m in 2018/19 to R5.5m in value in 2019/20, up 340%.
SUSTAINING INSPIRING COMMUNITIES
OUR COMMUNITY COMMITMENT
OUR RESILIENT PEOPLE
THE TEAM WHO TAKES US FORWARD
Our way of working has changed dramatically this year. For the most part, our business is now digital, with events restricted by lockdown, and social distancing and sanitisation the new normal. Our team has adjusted to these changes, and we now offer exciting digital and hybrid meeting options, with the same world-class service we have always delivered. Throughout our business, our people have adapted in inspiring ways, despite the challenging circumstances.
Throughout our business, our people have adapted in inspiring ways, despite the challenging circumstances.
This year, our waste, energy and water management efforts have continued to be a high priority. We have experienced a substantial decrease of 33.1% in our municipal water usage. Our energy is also down 4.7% on last year, and we were able to divert 462 metric tonnes of waste from landfill. Although lockdown is responsible for some of these numbers, we can also safely say it is thanks to our steadfast commitment to sustainability, which is guided by our NOW team, led by our Sustainability Officer, and our dedication to the United Nations Global Compact (UNGC).
PROTECTING AND PRESERVING
Informs, drives, and monitors the CTICC’s triple-bottom-line approach
The Board of Directors is committed to upholding good ethical standards and the application of corporate governance principles, in accordance with the King IV™ Report on Corporate Governance for South Africa 2016™. During the year under review, our staff underwent POPIA training. We also engaged with key stakeholders, from staff to shareholders to clients and convention bureaux.
ENGAGING WITH OUR STAKEHOLDERS
The Board of Directors ensures that good ethical
standards and corporate governance principles are adhered to, in accordance with the King IV Report on Corporate Governance for South
Africa, 2016™ (“King IV™”).
ADAPTING TO A NEW WORLD
Although we were closed to events during the fourth quarter, our team, behind the scenes, has been extremely busy. We have made it our focus to contract new events for the future, in partnership with our newly-contracted African lead generation partner and our European and American lead-generating partners. Likewise, we have implemented several innovative catering and technological advancements so that we can continue hosting safe events. Additionally, our forward book looks promising. We have secured 200 events into the future, and three international conferences in the medical field – the 14th International Congress of Human Genetics, the 18th International Congress of Immunology and the International Federation of Gynaecology and Obstetrics World Congress – have the potential to bring a total of +-17 000 delegates to our shores. These and a range of other events make up an inspiring international event forward book and a healthy future for the CTICC.
ANNUAL FINANCIAL STATEMENTS
The Annual Financial Statements consist of the Directors' Responsibility Statement, the Report of the Directors, the Risk Management Report, the Company Secretary’s Certificate, the Board Committee Reports, the Report of the Auditor-General, the Statements of Financial Position and Performance, the Statement of Changes in Net Assets, the Cash Flow Statement, the Statement of Comparison of Budget and Actual Amounts, Accounting Policies, as well as the Notes to the Financial Statements and General Information.
OUR FULL FINANCIAL REPORT FOR 2019/20
UNITED NATIONS GLOBAL COMPACT INDEX
Businesses should support and respect the protection of internationally proclaimed human rights.
Businesses should make sure that they are not complicit in human rights abuses.
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Businesses should uphold the elimination of all forms of forced and
Businesses should uphold the effective abolition of child labour.
Businesses should uphold the elimination of discrimination in respect of employment and occupation.
Businesses should support a precautionary approach to environmental challenges.
Businesses should undertake initiatives to promote greater environmental responsibility.
Businesses should encourage the development and diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its forms, including extortion and bribery.