Grandslots CSI’s
2010 presentation lunch
The Chaeli Campaign
QuadPara Association of
the Western Cape
Blisters for Bread
FIFA Fan Fest on
the Grand Parade
Sustainability Overview
Level 1 BBBEE Contributor
| 2010 | 2009 | |
| ACTUAL BBBEE RATING OVER TWO YEARS | ||
| Ownership | 25.00% | 25.00% |
| Management and control | 24.95% | 24.95% |
| Employment equity | 27.00% | 27.00% |
| Preferential procurement | 25.00% | 25.00% |
| Total | 101.95% | 101.95% |
| KINGDOMSLOTS | ||
| Economic Impact | ||
| Paid in taxes (R million) | 22,9 | 17,1 |
| Capital expenditure (R million) | 7,4 | 17,1 |
| Social impact | ||
| Jobs created | 965 | 849 |
| Environmental impact | ||
| Energy usage (kWh) | 142 402 | 140 286 |
| GRANDSLOTS | ||
| Economic impact | ||
| Paid in taxes (R million) | 54,0 | 60,0 |
| Capital expenditure (R million) | 9,1 | 20,3 |
| Social impact | ||
| Jobs created | 1 196 | 1 242 |
| Corporate social investment (R million) | 1,3 | 1,3 |
| Environmental impact | ||
| Energy usage (kWh) | 338 635 | 345 233 |
| GRANDWEST | ||
| Economic Impact | ||
| Paid in taxes (R million) | 490,1 | 538,6 |
| Capital expenditure (R million) | 67,1 | 18,1 |
| Social impact | ||
| Jobs created | 3 175 | 2 867 |
| Corporate social investment (R million) | 7,5 | 9,4 |
| Environmental impact | ||
| Energy usage (kWh) | 35 783 051 | 35 935 992 |
| Water consumption (kl) | 348 435 | 312 240 |
| Carbon footprint (CO2) | 38 457 755 | 38 230 358 |
| THE TABLE BAY | ||
| Economic Impact | ||
| Paid in taxes (R million) | 8,8 | 9,9 |
| Capital expenditure (R million) | 10,3 | 13,3 |
| Social impact | ||
| Jobs created | 672 | 520 |
| Corporate social investment (R million) | 0,2 | 0,2 |
| Environmental impact | ||
| Energy usage (kWh) | 7 311 702 | 7 952 607 |
| Water consumption (kl) | 54 107 | 77 875 |
| Carbon footprint (CO2) | 7 357 | 6 383 |
| THE GOLDEN VALLEY | ||
| Economic Impact | ||
| Paid in taxes (R million) | 22,7 | 22,2 |
| Capital expenditure (R million) | 6,9 | 7,1 |
| Social impact | ||
| Jobs created | 381 | 360 |
| Corporate social investment (R million) | 0,7 | 0,1 |
| Environmental impact | ||
| Energy usage (kWh) | 4 342 293 | 4 127 497 |
| Water consumption (kl) | 34 060 | 33 594 |
INTRODUCTION
GPI is a company that emerged from humble beginnings and the concept of transformation and empowerment fundamentally underpins its very existence. From those humble beginnings in the late 1990s’, today it is a successful black-controlled listed company with a strong focus on sustainability.
GPI’S OVERALL BBBEE RATING
Our 2010 and 2009 BEE rating was completed by an accredited BEE verification agency.
It is important to note that this assessment was based on GPI being a small/medium-sized entity, and that in 2011 the basis for this assessment is likely to change given the change in the operating revenue and profit profile of the business.
SHAREHOLDER EMPOWERMENT
GPI is more than 50% black-owned and controlled without taking the benefits of the modified flow through principle into account. In terms of the BBBEE codes, GPI is therefore considered as 100% black in relation to the businesses it is invested in.
As a result of the above, the business is excellently positioned in terms of its shareholder status to partner non-black businesses in green fields and other opportunities, as well as carving out its own niche in the industries it invests in as a black business.
That said, GPI is SunWest’s biggest local stakeholder in so far as shareholder empowerment is concerned and now owns an effective stake of just over 34%, which is in line with what was intended in terms of the original bid, which secured the licence. It is GPI’s impeccable empowerment credentials that secured the GrandWest Casino licence and GPI remains a shining example of true broad-based empowerment with an initial shareholder base comprising nearly 15 000 previously disadvantaged individuals.
GPI now holds more than 50% of the SunWest voting shares and is using this position of strength to ensure that shareholder empowerment continues to be maximised over the long term.
With the benefits of the regulated gaming environment now firmly entrenched through the elimination of unregulated operations, preventing the overstimulation of the latent demand for gambling and the achievement of secure tax revenues, the only remaining variable, which still requires some effort, is the empowerment of previously marginalised communities as shareholders in the gaming industry. In this regard GPI’s continued participation in the benefits flowing from the activities of SunWest is of paramount importance to SunWest and its sustainability strategy.
BBBEE OWNERSHIP
Subsequent to the acquisition of the Grandslots and Kingdomslots LPM operations, we deemed it prudent to highlight the minimum black ownership requirements in terms of the two aforementioned businesses LPM Route Operator Licence conditions compared to their actual black ownership status as at the end of June 2010.
| Kingdomslots | Grandslots | |
| Required Black Ownership | 30% | 35% |
|---|---|---|
| Actual Black Ownership as at 30 June 2010 | 100% | 100% |
INVESTMENT STRATEGY
GPI’s investment strategy is to channel its resources into entities where GPI is able to at least exercise significant influence. From this position GPI is able to encourage its underlying investments to grow in a sustainable manner, mindful of the interests of all its stakeholders.
RESPONSIBLE GAMBLING
GPI remains cognisant at all times of its social responsibility, particularly with regard to the harmful effects of problem gambling. To this end, all of its gambling investments take part in, and contribute voluntarily to, the ongoing treatment, training, research and awareness campaigns implemented through the NRGP.
The NRGP is the only national initiative in the world funded to the extent it is by the private sector, and the only one internationally in which treatment, research and education are integrated in a single initiative. It is also the only programme of its type in the world which is jointly-controlled by government and industry in a unique public/private sector partnership. As such it has the capacity to refer problem gamblers to Province-wide outpatient treatment centres and it is through these treatment centres, internal staff training programmes and continued public engagement sessions and media efforts that the risks associated with problem gambling, and how to deal with the effects thereof, whether directly or indirectly, become ever more evident to as broad a spectrum of South Africans as possible.
All of GPIs gambling associates, as well as Grandslots and Kingdomslots LPM Site Owners and licensed staff, undergo responsible gambling programme training.
SUSTAINABLE PERFORMANCE OF GPI’S NEWLY ACQUIRED LPM OPERATIONS
Economic contribution: Kingdomslots
Social contribution: Grandslots and Kingdomslots
Since first gaining their licences, Grandslots and Kingdomslots have created employment for a considerable number of people in each of their respective provinces.
Job creation: Grandslots
| Detail | 2010 | 2009 |
| Direct jobs | 44 | 42 |
|---|---|---|
| % women | 47.7% | 45.2% |
| % black | 77.3% | 76.2% |
| Indirect jobs | 1 152 | 1 200 |
Job creation: Kingdomslots
| Detail | 2010 | 2009 |
| Direct jobs | 35 | 33 |
|---|---|---|
| % women | 45.7% | 51.5% |
| % black | 88.6% | 87.9% |
| Indirect jobs | 930 | 816 |
Half of the positions available at Kingdomslots were filled by women and a full 31 out of 35 senior managers and staff are previously disadvantaged individuals. Similarly, at Grandslots four of the seven senior management positions have been filled by previously disadvantaged people and of that number, three are women.
During 2010 Grandslots employed 44 direct and 1 152 indirect staff (through pubs and other outlets).
Kingdomslots employed 35 direct and 930 indirect staff (through pubs and other outlets).
During the 2009/2010 period, GPIs’ newly acquired LPM operations followed a principle of preferential procurement with Kingdomslots spending R36 million on procurement and Grandslots R60 million. Skills development training for direct and indirect employees in both the Western Cape and KwaZulu-Natal was conducted to the value of R0,4 million and R0,2 million respectively.
LPM site owners benefitted from the enterprise development programme in which Grandslots and Kingdomslots fitted out new gaming venues and reinvested capital into existing individual ones in order to refurbish and upgrade these properties to ensure that customers received a consistent, quality experience. The details of these investments range from new furnishings to carpets, air-conditioning, safes, toilets, tills and bar counters, LCD televisions and even complete gaming area refurbishments. The total investment for the year across the Western Cape and KwaZulu-Natal was in excess of R7 million.
Corporate social investment: Grandslots
| 2010 | 2009 | |
| Detail | R million | R million |
| CSI contributions | 1,3 | 1,3 |
|---|
During 2010, Grandslots Corporate Social Investment (CSI) contributed to HIV and Tuberculosis projects (R0,3 million), Community Development (R0,4 million), Education projects (R0,4 million) and other general projects (R0,2 million). Individual projects which benefitted include:
- The SA Medical & Education Foundation which received a donation of R0,3 million for the purchase of equipment for an anti-retroviral (“ARV”) Unit in Delft.
- The Chaeli Campaign in Plumstead received R0,2 million to fund programmes focused on addressing the needs of differently abled children and their families in the Western Cape.
- Girls & Boys Town was given R0,1 million towards the sponsorship of education of 18 learners in Macassar, Kenilworth and Claremont.
- A donation of R0,2 million was made to the Knights of da Gama for the cost of installing solar power at the Holy Cross Youth and Child Care Centre for orphans in Atlantis.
- An amount of R0,1 million was paid to the Cape Town Drug Counselling Centre in Observatory and Mitchell’s Plain to offer treatment to affected people from disadvantaged and under-resourced areas.
- A donation of R0,07 million will be used to cover the cost of providing accessible pathways, security and parking at the new QuadPara Western Cape headquarters in Durbanville. In addition some of the funding will also be used towards the maintenance of a vehicle used to transport people with disabilities. The vehicle was previously bought for the organisation by Grandslots CSI.
- Neighbourhood Old Age Homes (“NOAH”) received R0,1 million for the erection of a security fence in Atlantis and the purchase of a vehicle for house visits and special services.
- The Marsh Memorial Home in Rondebosch offers sanctuary to abused and neglected children placed there by the judicial system. The donation of R0,05 million will purchase 240 food parcels for needy families within a 25 km radius of the home.
- The St George’s Home for Girls in Wynberg will similarly use their donation of R0,05 million to purchase 240 food parcels for needy families.
- The donation of R0,05 million to the Epilepsy South Africa Educational Trust
will provide financial support to Western Cape students with epilepsy who wish
to enter into tertiary education in their chosen fields. Five bursaries to the
value of R0,01 million each will be offered.
Environmental sustainability: Kingdomslots
| Detail | 2010 | 2009 |
| Energy usage (kWh) | 142 402 | 140 256 |
|---|---|---|
Environmental sustainability: Grandslots |
||
| Detail | 2010 | 2009 |
| Energy usage (kWh) | 338 635 | 345 233 |
SUSTAINABLE PEFORMANCE OF GRANDWEST
Economic contribution: GrandWest
GrandWest operates an Employment Equity Committee. The company’s new employment equity plan for 2010 reflects the plans in place to aid with recruitment and development.
GrandWest has created many business and employment opportunities for the surrounding communities and beyond, and has 27 concessionaires ranging from fast food outlets and restaurants to entertainment and retail. The eleven outsourced service providers offer catering, security and cleaning services.
Wherever possible, GrandWest keeps its purchasing power for goods and services in the local economy. 60% of tracked procurement was placed with the BEE sector, substantially advancing the provincial government’s agenda in respect of transformation in the Western Cape leisure industry.
Corporate social investment: GrandWest
| Detail | 2010 | 2009 |
| R million | R million | |
| CSI contributions | 7,5 | 9,4 |
|---|
By 2010, GrandWest’s CSI committee, under the guidance of GPI representatives who serve on the Western Cape Manco Board, had overseen the allocation of R7,5 million in social investments to local community projects and programmes spread between health (R3 million), HIV and Tuberculosis projects (R1 million), educational projects (R2,3 million), enterprise development (R0,4 million) and other general projects (R0,8 million).
The Health contributions alone affected in excess of 5 000 Western Cape individuals directly and assisted in enhancing the lives and living conditions of a considerably larger number of individuals indirectly. In addition over 160 individuals benefitted from GrandWest CSI’s education investment and the Blisters for Bread Campaign detailed below helped feed 235 500 children across 640 different primary, secondary and special needs schools across the Western Cape.
Listed below are some of the projects and programmes that have benefitted from GrandWest CSI in 2010:
- Blisters for Bread – the annual Peninsula Schools Feeding Association charity family fun walk which raises money to feed hungry Cape Peninsula school children.
- Ruyterwacht Community Learning Centre – a wireless network facility with computers and internet where the people of Ruyterwacht are able to acquire skills, tuition, life skills training, career guidance and also have access to employment opportunities.
- Cape Environmental Trust Youth Development programme at Zeekoevlei – enabling disadvantaged children to acquire environmental and social life skills and receive a certificate at the end of the course.
- Red Cross Society – GrandWest CSI has provided five Field Kitchens which offer relief to poor Western Cape communities devastated by floods, fire, etc.
- The GrandWest CSI-SHAWCO mobile community health clinics provide primary health care to an ever-increasing number of Cape Metropole citizens.
- Western Cape Primary Science programme – the teaching of science is a problem area in schools. GrandWest CSI funded the translation of a series of books into Xhosa as well as the production of a DVD that would benefit both educators and learners.
- Ntwasahlobo Primary, Litha Primary, Siyanda Educare and Siphamandla Educare – funded reading materials, mattresses, educational toys, musical instruments, tables and desks.
- SOS Children’s Village, Thornton – GrandWest CSI adopted House 13 and House 15 in 2005 and besides initially purchasing appliances, from time to time has taken care of other of the two homes’ needs. SOS children are also included in Christmas parties, visits to the Aquarium and shows at the Grand Arena.
- CPUT School of Opthalmology – the purchase of Glaucoma testing apparatus.
- Artscape High School Drama Festival and Artscape School Arts Festival – annual arts festival aimed at youth across the wider Cape Metropolitan region.
- Women’s Day Celebration – a prime example of enterprise development, this annual exhibition and networking opportunity for budding entrepreneurs is held in the Market Hall at GrandWest.
Environmental sustainability: GrandWest
| Detail | 2010 | 2009 |
| Enery usage (kWh) | 35 783 051 | 35 935 992 |
|---|---|---|
| Water consumption (kl) | 348 435 | 312 240 |
| Carbon footprint (tCO2) | 38 457 755 | 38 230 358 |
GrandWest first implemented the National Heritage Environmental Management System in May 2006, for which the complex was awarded a Silver Rating. Since then GrandWest has been awarded a Gold Rating every year and is now one percentage point away from achieving Platinum status [94%].
In addition to improving on set targets for the elimination of waste and the reduction of the company’s carbon footprint, refuse and any wasteful use of water and energy, GrandWest is also committed to applying its environmental policy principles to surrounding areas. These include Goodwood, Thornton and Ruyterwacht.
SUSTAINABLE PERFORMANCE OF THE TABLE BAY HOTEL
Economic contribution: The Table Bay Hotel
The Table Bay Hotel has two concessionaires who employ a total of 37 people, and five service providers who employ in excess of 400 people.
Corporate social investment: The Table Bay Hotel
| 2010 | 2009 | |
| Detail | R million | R million |
| CSI contributions | 0,2 | 0,2 |
|---|
During 2010, the Table Bay Hotel contributed in excess of R0,2 million to health (R0,1 million), HIV and Tuberculosis projects (R0,02 million), educational projects (R0,08 million) and other general projects (R0,02 million).
Environmental sustainability: The Table Bay Hotel
| Detail | 2010 | 2009 |
| Energy usage (kWh) | 7 311 702 | 7 952 607 |
|---|---|---|
| Water consumption (kl) | 54 107 | 77 875 |
| Carbon footprint (tCO2) | 7 357 | 6 383 |
In just under two years of adhering to the principles of the National Heritage Programme, the Table Bay Hotel’s Silver status was upgraded to Gold.
Among its most important conservation efforts are electricity, gas, water and waste saving. Energy-saving electric light bulbs have been fitted and water is saved with the introduction of dual flushing toilet tanks and shower heads that mix the water with air.
SUSTAINABLE PERFORMANCE OF THE GOLDEN VALLEY CASINO AND LODGE
Economic Contribution: Golden Valley Casino and Lodge
The Golden Valley Casino has appointed three major service providers in the categories of catering, cleaning and security, creating employment for 224 people.
Corporate social investment: Golden Valley Casino and Lodge
| 2010 | 2009 | |
| Detail | R million | R million |
| CSI contributions | 0,7 | 0,7 |
|---|
During 2010, the Golden Valley Casino’s CSI funding included spending on health, educational projects (R0,04 million), contributions to the regional tourism fund (R0,05 million), pre-bid CSI commitments (R0,6 million) and other general projects (R0,05 million).
Some of the projects include:
- The Breede Valley Municipality switching-on of the Christmas lights. The casino pays an estimated R10 000 annually in support of the event.
- Anchor sponsors of the Worcester Rotary Club’s Pioneer Rally in support of the Pioneer School for the Blind. For the third year running, Golden Valley has contributed approximately R0,07 million.
- An amount of almost R0,4 million was spent on a disaster relief project in which the Casino partnered with the Worcester Municipality.
- Golden Valley spent R0,1 million on computers and internet connectivity for seven libraries.
- R0,05 million Is contributed annually towards tourism in the region.
- The sport development programme provides support for talented black junior golfers. To date, R0,1 million has been paid to the Riverside Golf Club for this purpose.
- As part of an enterprise development initiative, Golden Valley Casino supported the development of the Body Devine Spa treatment centre by converting two conference facilities into temporary premises, and through marketing the facility to MVG members.
Environmental sustainability: Golden Valley Casino and Lodge
| Detail | 2010 | 2009 |
| R million | R million | |
| Energy usage (kWh) | 4 342 293 | 4 127 497 |
|---|---|---|
| Water consumption (kl) | 34 060 | 33 594 |
The Golden Valley Casino and Lodge is a member of the Heritage Environmental rating programme. The property’s efforts are focused on reducing water and energy consumption at the complex in order to safeguard Africa’s most precious resources.
CAPE TOWN 2010 FIFA FAN FEST
SCORING GREEN GOALS
Grand World Vision Events and Cape Town City’s 2010 Green Goal team identified and implemented a series of event greening measures to ensure that the negative environmental impacts of the festival are reduced as far as possible.
The aim of the programme was to conserve water, improve energy efficiency, reduce carbon emissions and waste generation, and to enhance recycling. A strong communications component was also introduced to promote environmental awareness and sustainable lifestyle practices.
Waste reduction and recycling measures included:
- A two-bin waste separation and recycling system. 40% of the solid waste was recycled or diverted away from the landfill. All plastic, glass, tin and polystyrene were recycled.
- The sale of reusable souvenir cups instead of single-use disposable cups.
- The use of reusable crockery and cutlery as opposed to disposable cutlery and tableware.
- The use of reusable plastic crates instead of single-use cardboard boxes.
- The prohibition of promotional handouts and flyers at entrances to the Fan Fest.
- The use of large dispensers for condiments and sugar instead of single-sachet servings.
- The serving of beer and soft drinks in a commemorative cup from draught and soda fountains, as opposed to bottles and cans.
Sustainable energy and smart water usage included:
- Renewable energy certificates from Darling Wind Farm were purchased in order to power the Fan Fest with sustainable energy. Total electricity consumption for the period of the World Cup was 3 333 kWh.
- Water usage was monitored daily, and nine water stations ensured the provision of fresh and free tap water to the public as a more responsible alternative to bottled water. 99 000 litres of water were used.
Carbon emissions reduced:
- Specially planned park-and-ride shuttle and rail services were made available which not only alleviated traffic congestion in the City, but also reduced climate-changing carbon emissions.
The total carbon footprint for the Fan Fest was 48,03 tonnes CO2 equivalent. Waste accounted for approximately 93% of this figure, electricity 7% and water consumed was considered to be an insignificant amount.