Chairman’s Report

Chairman’s Introduction
As Xander Spies, Chairman of the Racehorse Owners Association NPC (“the ROA”), it is my privilege to present this Chairman’s Report for the financial year ended 31 July 2025. While this report addresses the year under review, it must also speak to the wider context in which our members participate, namely a sport navigating structural change, evolving ownership expectations, and a clear need for long-term sustainability.

The ROA exists to protect and advance the interests of owners, to strengthen the ownership experience, and to contribute meaningfully to the stability and credibility of horseracing in South Africa. Over the past year, the Board has pursued these objectives with discipline, energy, and an unwavering commitment to member value.

Financial Overview
The annual report of the ROA is presented herewith, incorporating the consolidated and separate annual financial statements (“AFS”) of the ROA and its subsidiary, Randjesfontein Training Centre (Pty) Ltd, for the year ended 31 July 2025. The AFS provide a comprehensive overview of the group’s financial performance and position, reflecting the results of both the ROA and its subsidiary for the reporting period.

For the year under review, the ROA reported a loss of R1.5 million, representing a meaningful improvement of R1.9 million compared to the R3.4 million loss recorded in the prior year. This favourable movement was primarily attributable to a positive performance in investments. A profit on disposal of investments of R0.7 million was recorded, compared to a loss on disposal of R1 million in the prior year. In addition, the unit trust portfolio achieved an increase in fair value of approximately R5 million during 2025, which exceeds the prior year’s movement by approximately R2.1 million.

Revenue from membership fees was marginally lower, and investment revenue decreased by approximately R0.7 million, influenced by reduced cash balances and interest rate movements. Expenses remained tightly managed. Excluding the prior year’s loss on disposal of investments, total expenses remained flat at R8.8 million, reflecting ongoing fiscal discipline and careful oversight of non-essential expenditure.

At year-end, the ROA’s investment in unit trusts was valued at approximately R46 million, reflecting an increase of R6 million over the prior year. Cash and cash equivalents totalled approximately R0.1 million, reflecting a decrease of R9.3 million from the prior year. The Board remains mindful that these funds must be deployed prudently and in alignment with the objectives set out in the ROA’s Memorandum of Incorporation, while maintaining strict control over expenditure and safeguarding liquidity.

Randjesfontein remains a valuable and strategic asset of the ROA, carried on the balance sheet at R196 million under the cost model. The property continues to serve as a premier training facility on the Highveld and remains central to ongoing strategic deliberations regarding the long-term infrastructure needs of the sport.

I extend my sincere appreciation to the finance function and to those supporting governance processes, for the precision, diligence, and professionalism reflected in the financial reporting and financial stewardship throughout the year.

Enhancing the Ownership Experience
The ROA’s purpose is inseparable from the lived experience of owners. Owners are the heartbeat of the sport, and owner confidence is built through value, transparency, and an experience that feels worthy of the investment, both financial and emotional. During the year under review, the ROA continued to prioritise direct engagement with members and the enhancement of race-day hospitality, communication, and practical owner support.

In addition to maintaining strong owner engagement across the racing calendar, the ROA has continued to evolve its thinking on what a modern ownership experience should look like. This includes the deliberate cultivation of a more welcoming and accessible on-course environment, stronger communication channels, and an approach that supports owners across different levels of participation, from the long-standing owner to the first-time entrant into the sport.

Stakes and Owner Value
Stakes remain a critical pillar of ownership sustainability. Owners assess the sport through the lens of value, fairness, and the realistic possibility of return, even where passion remains the primary driver of participation. The ROA has consistently advocated for improved stakes structures and meaningful incentives that support owners across the full spectrum of racing, not only at the elite end.

Incentive-based initiatives, including bonus-driven mechanisms, have continued to feature in ROA strategy discussions, particularly in relation to membership growth, owner retention, and the development of a credible value proposition for owners who expect tangible benefits alongside hospitality and community. These initiatives must always be balanced against financial prudence and long-term sustainability, and the Board has remained active in assessing their impact, affordability, and appropriate evolution.

Marketing and Membership Growth
Membership growth and membership diversity remain fundamental to the long-term health of racing. During the year under review, membership trends reflected both opportunities and challenges. Encouragingly, the ROA continued to see meaningful growth in targeted areas, including increasing participation from KwaZulu-Natal owners, a notable rise in international members who retain an interest in South African racing, and steady improvement in female participation, often associated with emerging syndicate models and visible success among female trainers and professionals.

Membership diversification statistics discussed during the year reflected that, by late May 2025, the ROA had attracted over eighty new and returning members in the season to date, including both brand-new members and rejoining members. Growth was supported through targeted engagement with lapsed members, stronger hospitality offerings, and the strategic use of marketing channels, including planned promotional activity and improvements to direct communication systems.

The ROA has also continued to identify the broader equestrian environment as an important source of future owners and participants, recognising that many within equestrian disciplines already understand the cost structure, commitment, and culture of horse participation. Engagement discussions have included initiatives aimed at improving awareness and education regarding the racing value chain and the range of career opportunities within racing, particularly for younger demographics. While resources and timing constraints affect the pace of engagement, this remains a strategically important avenue for ownership growth and long-term demographic development.

Industry Partnerships and Strategic Alignment
A central theme of the year under review has been the continued engagement with 4Racing (Pty) Ltd (“4R”) and the work being undertaken to shape a coherent, credible owner value proposition for the future. This is a complex and consequential process, involving people, systems, operational positioning, and the long-term role of the ROA in an evolving landscape.

Throughout the year, the Board has approached these discussions with two guiding principles: first, that owners require a stronger and more modern ownership proposition, and second, that the interests and voice of owners must remain independently protected within industry structures. The ROA has therefore remained committed to robust governance, careful consultation, and the protection of member interests while participating meaningfully in the collaborative future of the sport.

A key component of this work is ensuring that the transition of functions, where contemplated, is undertaken with appropriate legal guidance and sound process, particularly in relation to staff, operational continuity, and member accountability. The Board has recognised the importance of independent legal counsel and specialist support where required, given the significance of the structural decisions in progress.

Welfare, Ethics, and Industry Sustainability
The health of racing is inseparable from the welfare and stability of its people. Initiatives directed at improving the welfare of grooms and stable staff remain among the most important developments in recent years, with ongoing benefits not only for individuals and families but also for the stability of the wider industry relationship.

During the year under review, work continued to ensure that grooms are informed about available benefits and supported in utilising them effectively. Workshops and engagement sessions have assisted in strengthening understanding, reducing misinformation, and improving the relationship climate at training centres. The broader industry benefit of these programmes is clear: improved welfare strengthens resilience, reduces volatility, and supports a more sustainable working environment across stakeholders.

In parallel, the ROA has continued to support ethical governance and clearer regulatory frameworks, including ongoing engagement with industry rule-making processes and the need for ownership structures and definitions that properly reflect modern ownership models, including syndication and fractional ownership. Clear rules and accessible education protect owners, improve confidence, and reduce the risk of poor experiences driving owners out of the sport.

Randjesfontein and Strategic Assets
Randjesfontein remains one of the ROA’s most significant strategic assets. The Board has maintained a firm focus on responsible stewardship of this asset, including tenant relationships, operational realities, and the infrastructure demands of a high-functioning training environment.

During the year under review, tenant-related developments at Randjesfontein, including turnover-based rental commencement and the growth of hosted markets and events, contributed positively to the broader precinct environment and stakeholder experience. The Board has also remained actively engaged in addressing infrastructure maintenance needs, including ongoing assessment and planning around key facility considerations, with the objective of preserving the facility’s standing as a premier training centre and ensuring safety, reliability, and professionalism in the environment in which horses and people operate.

Closing Remarks
I would like to extend my sincere gratitude to my fellow Directors for their time, judgement, and dedication during a year requiring both steady governance and forward-thinking planning. My thanks go to Greg Kotzen, Jackie Sparke, Trevelen Pillay, and Natalie Turner, each of whom has contributed meaningfully to Board deliberations and the operational progress of the ROA.

A special acknowledgement is due to our CEO, Natalie Turner, for her leadership, resilience, and unrelenting focus on the ownership experience and stakeholder engagement. Her work, together with the support of the ROA staff, has ensured that the organisation continues to function with professionalism and purpose in a period of ongoing change. I also thank the ROA team for their commitment to service delivery, member support, and the countless operational details that allow the ROA to deliver value on the ground.

Finally, to our members, thank you for your continued support, engagement, and belief in the importance of a strong owner voice in South African horseracing. The ROA remains committed to advancing your interests, strengthening the ownership experience, and contributing to a racing industry that is sustainable, credible, and worthy of the passion that owners bring to it.

Sincerely,
Xander Spies
Chairman, Racehorse Owners Association