PROMOTING FORWARD THINKING
The 2021 financial year has seen the CTICC looking ahead, laying the groundwork for future developments and reimagining our new – and better – tomorrow.
Like the red queen making her move on the front cover of the Integrated Annual Report and on this website, we are taking advantage of our flexibility, igniting our passion and embracing our strengths so that we can continue adapting and thriving in an environment changed by Covid-19.
By shape-shifting our operations and transforming our spaces, we work towards remaining competitive in an ever-changing events landscape. But like in the game of chess, we can only succeed by using all the pieces available to us. So, together with all our stakeholders – our clients, staff, shareholders, business tourism partners, communities, city, country and region – we are making changes that will benefit us all.
In that context, our 2020/21 Integrated Annual Report expresses our ability to promote forward thinking by analysing our current climate, developing progressive strategies and making moves that will take us into the future.
2020/21 AT A GLANCE
In the past financial year, we achieved a turnover of R43m due to severe Covid-19 lockdown restrictions. We could still contribute to the South African and Western Cape economies and make a tangible difference to our communities and environment during this time.
ABOUT THE CTICC
MOVING ON UP TO STAY AHEAD
The CTICC is a world-class venue designed to welcome international, regional and local conferences and exhibitions to South Africa and the Mother City. Our complex consists of CTICC 1 and CTICC 2, connected by a Skybridge. We offer flexible spaces for conferences, exhibitions, trade fairs, banquets, concerts, film and photo shoots, and digital and hybrid events. We also provide a wide range of venue, food and beverage options – from large auditoria, exhibition halls and boardrooms to office space, warehousing, storage and cafés.
“We provide digital and on-site spaces for inspiration, motivation and information."
HOSTING THE HUB OF HOPE
NURTURING OUR COMMUNITIES
The community has always been at the core of our operations. When Covid-19 changed our world, it became even more critical to support our people in any way possible. This response has included, amongst others, providing a space of inspiration and innovation in the form of the Hospital of Hope (2019/20 financial year) and the Vaccination Centre of Hope during this financial year. These effective public-private partnerships are just two of our forward-thinking moves to utilise our space for a caring and creative purpose that benefits the citizens of Cape Town and beyond.
THIS YEAR'S EVENTS
The year in review was an anomaly, even more so than the previous financial year. Ongoing pandemic lockdown regulations and travel restrictions severely limited the number of meetings we could host. In 2020/21, we held 53 events, an 86.6% reduction compared to 2019/20. The total attendee number was also down – 98.3% – for the same reason. However, in line with our values of passion, innovation and excellence, we made new moves by exploring our flexibility, evaluating new additional revenue streams and increasing our focus on digital and hybrid events.
ADAPTING TO THE TIMES
The coronavirus has continued to dampen already negative and highly volatile economic conditions in the world as a whole and South Africa in particular. Due to severe lockdown restrictions and the inability to host large events for much of the financial year, the CTICC's revenue before interest, taxes, depreciation and amortisation (EBITDA) was severely affected. We only achieved a revenue of R52.1m, a 76.4% decrease on 2019/20. In line with this, we anticipated returning an EBITDA loss of 137.9m. Still, we managed to reduce it to R93.7m (a 32% improvement on target) due to money-saving initiatives, vigilant management and the fixed costs associated with operating a convention centre.
THE ECONOMIC STORM CONTINUES
OUR COMMUNITY PARTNERSHIPS
ENABLING OUR COMMUNITIES TO FLOURISH
The CTICC has always been committed to its role as a responsible corporate citizen and we continue to care for and improve the lives of those we serve. Not only does upliftment form part of our core values, but it is also the very reason why our Local Community Partner (LCP) Programme is so close to our hearts. This financial year, three new LCPs joined the CTICC, and another has remained as our long-term partner. In the year under review, we helped our communities flourish through donations of sanitisation products, raising awareness about important topics and improving literacy. Despite not being able to host regular engagements with our partners, our corporate social responsibility (CSR) contribution totalled almost R125 000.
OUR UNSTOPPABLE PEOPLE
Our people have risen to the challenges presented by Covid-19, and their commitment continues to inspire us all.
The restrictions on large meetings and international travel affected the CTICC’s ability to do business, impacting our income severely. We delayed retrenchments for as long as we could, but the operating conditions simply did not allow us to keep our full staff complement. We had to let go of many of our staff during the financial year. A small percentage of our staff were seconded to the City of Cape Town.
Our remaining employees continue to show their grit, determination and commitment by embracing new roles and responsibilities. Our staff, indeed, are unstoppable.
RISING TO A CHALLENGING FUTURE
NURTURING OUR PLANET
PRESERVING THE PROMISE OF TOMORROW
This year, our energy, water and waste management efforts continued to be a high priority. We experienced a 54.9% reduction in municipal water usage, a 37.8% decrease in greenhouse gas emissions, and a 37.4% drop in energy consumption. Additionally, 36.6 metric tonnes of waste was diverted from landfill. Although lockdown is responsible for many of these figures, we can also safely say it is thanks to our steadfast commitment to sustainability, guided by our NOW team, and our dedication to the United Nations Global Compact (UNGC).
The Board of Directors is committed to upholding good ethical standards and applying corporate governance principles in accordance with the King IV Report on Corporate Governance for South Africa, 2016™ (“King IV™”). During the year under review, we established the Finance Committee, and we revised and implemented several important governance frameworks. We also engaged with key stakeholders.
ENSURING BEST PRACTICE GOVERNANCE
The new Finance Committee and revised governance frameworks assist the Board with oversight and ensure that the CTICC is compliant.
Although we couldn't host many large events, our team took this time to create new revenue streams for a Covid-19 environment. We launched our digital platform for virtual and hybrid meetings, and our own events took centre stage. We reimagined our venue spaces by exploring different offerings, such as hot desking, and graduation ceremonies. We also continued to build our relationship with our African Association Management Company partner.
We are proud to say that our forward book looks promising. We secured 15 new international conferences during the lockdown, and over 40 international events and more than 200 local events have been confirmed for 2022 to 2027. These events support the catalytic sectors of the City of Cape Town and the Western Cape Provincial Government.
NEGOTIATING A NEW WORLD
Our own events include the “Allsport Coaches Workshops” in March and October 2020, our second “Gift Fair” in November 2021, “This is Art” in November 2021 and the “Ultimate Beverage Show” in January 2022.
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 2020/21
UNITED NATIONS GLOBAL COMPACT INDEX
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