Members’ Information Meeting

11th August 2009

Contents

• Purpose

• Background

• Finances

• Membership

• Next Steps

Purpose

• Open discussion/no decisions

• Revised Strategy

• Members’ views

• Seeking input

• Management Committee

Background

• Strategy document 2006

• Changed economy

• Membership – reduction in members

• Intermediates upgrading

• Develop new framework/strategy

Finance

• Historical trends

• Current year

• Forecasts/assumptions

• Inter-club Comparisons

• Cost management

• Long term funding

Historical trends

Finance continued

Income 2008 2007 2006

Subscriptions 813,161 741,110 677,338

Green Fees 228,172 245,498 234,020

Bar 28 4,240 -

Expenses

Course Maintenance 436,597 385,683 356,060

Admin Salaries 190,063 189,736 159,955

Overheads 279,880 292,582 295,266

Deficit for the year (52,812) (80,960) (56,756)

Finance continued

Current year

Income 2009 2008

Subscriptions 820,000 813,161

Green Fees 185,000 228,172

Bar 10,000 28

Expenses

Course Maintenance 414,602 436,597

Admin Salaries 187,049 190,063

Overheads 238,534 279,880

Deficit for the year (35,000) (52,812)

Finance continued

Forecast -Assumptions

• Operational breakeven

• Subscriptions

• Green Fees

• Overheads

• Bank funding

Finance continued

Forecast

Income 2010 2011 2012

Subscriptions 835,200 897,560 963,038

Green Fees 200,000 200,000 200,000

Bar - - -

Expenses

Course Maintenance 435,750 457,538 480,414

Admin Salaries 190,063 195,666 201,549

Overheads 237,937 249,834 262,326

Deficit for the year (29,150) (6,078) 17,579

Finance continued

Financing Models

• Balance current income and current expenditure

Development projects funds by new entrance fees

• Funding current income from all income

Current income and entrance fees Development financed by borrowings/capital levies

• Total annual costs divided by number of members

• Variations of the above

Finance continued

Cost Management

• Wages & Salaries

Forecast saving €28,500 from 2008 Payroll costs represent 55% of total costs

• Course

Save €21,994 from 2008 Management of greens Unavoidable costs due to weather conditions etc Levels of authorisation for significant cost items

Finance continued

• Administration

Save €10,000 from 2008 Renegotiate all supplier contracts Sourcing of alternative suppliers

• Bar

Save €15,000 on last year Flexible work practices for staff Reduced staff costs to match decreased turnover levels Stringent stock control

Cost Management continued

Finance continued

Long Term Funding continued

2010 2009 (f) 2008 2007

Entrance fees ???? 105,000 253,250 314,310

Development Exp ???? - 219,454 143,479

Refundable Levies ???? 62,532 53,011 44,123

Bank Repayments ???? 50,000 50,000 50,000

Finance continued

Long Term Funding

• Bank Position

• Refundable levy

• Development expenditure

• Entrance Fees

Membership

• Retention

• Recruitment

• Category changes

• New categories

Membership continued

• Age Profile

• Encourage juniors/intermediate

• Intermediate → full

• Family Membership

• 5 day/associates upgrade offer

Membership continued

Age profile

Women Men Total

75 plus 14 32 46 5%

65-74 69 110 179 21%

55-64 101 145 246 29% 56%

45-54 90 134 224 27% 82%

34-44 27 82 109 13%

27-33 8 32 40 5%

309 535 844 100%

Membership continued

Entrance Fees

• Current level - €14,500

• Intermediates – 50% discount; spread over 10 years

• Connected persons – 1/3 discount

Membership continued

Entrance Fees

• Leave as is

• Reduce

• Remove

• Increase discounts for family members

Membership continued

Discounts/timing of payments

• Spread payment of entrance fee

• Discounts on subscriptions

• Reduce subs for under 40s

• Reduced sub for older members

Membership continued

Incentive/rewards for new membership

• Reduced sub for introducer

• Welcome package for new members

• Survey of recent new members

Refundable Levy

• Amount/annual outflow

• Current outstanding €1.3m

• Over 10 years €130K per annum

• Over 20 years €65K per annum

Refundable Levy

Options

• Set-off – family members; green fees; etc

• Raffle

• Subs offset – age category

• Sinking fund

• Status quo

Next Steps

• Management Committee

• New Strategy document

• AGM?