1. Africa Cup of Nations, South Africa 2013 and CHAN, South Africa 2014 CELEBRATING FOOTBALL CELEBRATING AFRICA PRESENTATION BY MVUZO MBEBE CHIEF EXECUTIVE OFFICER 16 MAY 2012

2. STRATEGY

3. Celebrating Football – Celebrating Africa Opportunity to thank Africa for the FIFA World Cup support. AFCON – Celebration of African Football Chan – Thank you Africa, Thank you CAF (coincides with 20years of South Africas democracy)

4. Objectives Deliver seamless high quality event(s) South Africa is accustomed to. Reposition positively SAFA locally and in African football Get the Nation and Continent behind the events Enhance the Football Brand in Africa in general and South Africa in particular Create a platform to enhance brand SOUTH AFRICA on the continent Deliver net profits for SAFA

5. Critical Success Factors FULL STADIUMS! FULL STADIUMS! FULL STADIUMS! Performance of and public support for Bafana Bafana leading to 2013/2014 and during AFCON/CHAN Flexible and appropriate OAA – CAF agreement Integrity, corporate governance and transparency Governments total support and commitment Football stakeholders and institutions acting in unison LOC being seen to be and act as distinct persona Support of corporate South Africa Focused and timeous implementation AFCON and CHAN - one integrated planning and create a two year platform

6. Critical Successful Factors Cont… Time and resources are limited AFCON and Chan one integrated planning and budgeting Excellent liaison with CAF, SAFA, Ministry of Sport and Host Provinces and cities Football stakeholders act in unison in the presentation of these events Good and proper corporate governance and structure Government support at all three tiers and across critical Ministries Cost management and revenue maximization Flexible procurement processes but geared towards BBBEE and current football industry players

7. Critical Successful Factors Cont… Create various touch points for in key Languages and culture for everyone who wants to be involved Mobilise ambassadors and High Commissions on a consistent basis Targeted communication for African Diaspora in South Africa Trophy Tour – from Zambia to South Africa Partnership with AFCON Commercial partners in their own programmes and initiative Every CAF event must be made a communication platform for AFCON & CHAN Targeted communication for African Diaspora in South Africa Continental friendly ticketing platform Targeted ticket sales to AFCON Commercial partners and companies doing business in Africa

8. GOVERNANCE STRUCTURES

9. Governance CAN List of Requirements per CAF (LoR) Commercial Regulations Africa Cup of Nations Regulations Other CAF Directives Technical Annexure Host City Agreement, Stadium Use Agreement, Roles and Responsibility Matrix CAF CAF Organising Committee SAFA 100% Shareholder AFCON 2013 NPC National, Provincial, Local Government Structures Other Stakeholders

10. CAF Venue Functional Areas Marketing Venue Manager Media OfficerTSG Security Media Officer Website Editors Protocol Event Management & Coordinator Assistant CAF Assistant General Coordinator CAF Head of Delegation (AFCON OC Member) AFCON OC Member CAF General Co-ordinator Medical/Doping

11. Governance - Institutional SAFA 100% Shareholder AFCON CEO AFCON Board Sub - Committees AFCON LOC BOARD OperationsCommercial

12. HOSTING ASSOCIATION OBLIGATIONS in OAA

13. OBLIGATIONS OAA ClauseCategory STAGING COSTS 2.2Inspection Visits Covering travel and accommodation costs 2.3Stadiums Provision of stadiums that meet the technical specifications to stage matches of international level. These stadiums to be available for exclusive use of the tournament from 1 Dec 2012 to 17 Feb 2013 2.4CAF / VIP Hospitality Covering catering and decor costs at match venues 2.5Commercial Hospitality 2.6Matches Staging of the match 2.7Draw Covering travel and accommodation costs, venue hire, catering and all staging costs – inclusive of broadcast production costs 2.8Ceremonies Creative, production and executing of both ceremonies

14. OBLIGATIONS OAA ClauseCategory STAGING COSTS 2.11Infrastructure / Costs Where required, such as Media centres etc 2.12Power Supply Ensuring that we have sufficient to satisfy the needs of the event

15. OBLIGATIONS OAA ClauseCategory HOSTING COSTS 3.2Accommodation (CAF) Provision of accommodation on a bed and breakfast basis for the duration of the tournament 3.3Team Hotels Provision of accommodation on full board basis for the duration of the tournament 3.4Transportation Provision of transport for CAF Delegation, Teams for the duration of the tournament 3.6Official Training Sites 1 site per team for the duration of the tournament, fully equipped

16. OBLIGATIONS OAA ClauseCategory General Provisions 4.1Security Guarantee a safe and secure tournament for all participants, inclusive of spectators at matches and within the country 4.2Accreditation Provision of devices and vetting by the relevant government agencies 4.4Stadium Media Centres Working space for the media during the tournament 4.6Medical Services Support the CAF Delegation, Teams and Referees during the tournament 4.9Permits and Confirmations Provide guarantees for all participants (and spectators) to be allowed entry to South Africa 4.10Health Requirements Identification of Hospitals and related services

17. OBLIGATIONS OAA ClauseCategory Marketing 5 CAF owns the marketing rights but there is an obligation on the LOC to obtain certain consents and approvals from Government CAF Sponsors CAF have their own sponsors for the event, who have exclusive rights to various naming elements and categories. National Partners CAF make provision for South African based companies to be involved, with the current split to LOC being 20% of cash value. Branded Licensees, Merchandise and Concessionaires CAF holds the rights to these, but under separate agreement cede these to the LOC on 80/20 spilt of net revenue in favour of the LOC 5.9Clean Sites All sites that are used for the event must be free of any branding 5.16Broadcast Production Costs Cover the technical production costs for worldwide distribution of the signal

18. OBLIGATIONS OAA ClauseCategory Ticketing 6.1Ticket Sales / Distribution Unlike the World Cup, LOC responsible for all costs related to establish the ticketing network 6.5Ticket Design and printing As above, to develop the design and related matters

19. OBLIGATIONS OAA ClauseCategory Insurance 7.1Liability Insurance To have event insurance

20. OBLIGATIONS OAA ClauseCategory Taxes 9.2Tax Ruling Guarantee import and re-export of various items – free of taxes

21. OBLIGATIONS OAA ClauseCategory Indemnification 10.1Indemnification

22. Mobilizing Resources – approximate R300m LOC costs CAF Commercial split s Host Provinces and Cities National Government Local commercial revenues and Ticketing

23. CAF CONTRIBUTIONS DocumentReg NoDescription% ValueRand Value Regulations94.5TV & Broadcast Rights and publicity 40% Pool (all participating countries) 20% Host (South Africa) 20% CAF 20% Technical Development Fund 20%R44 000 000,00 DocumentDescription% ValueRand Value Ticketing Revenue 25% Host Cities 5% SAFA Structures 10% SAFA 10% FIFA / CAF 50% Commercial Agreement (Merchandise, Commercial Hospitality)80% Commercial Agreement (National Partners, Branded Licensees)65%

24. Revenue Streams for LOC Its not the SWC – commercial opportunities limited All Sponsorship and TV (excluding local FTA) – 20% on net income of CAF (2010 Angola LOC – usd 3.1 m) Ticketing net revenue to LOC 50% (25% to Host cities at Group stages, find an equitable system for knockout stages) Merchandising and Hospitality – proposing 50% of this LOC (subject to CAF negotiations) Limited National suppliers programmes – value in kind

25. Filling the stadiums – 500 000 tickets Its not the SWC – will not sell itself Secure but accessible and affordable tickets Choice of venue Where possible match team placement with Diaspora profile Incentives for local football structures Targeted ticket sales to companies doing business in Africa Focused tiered hospitality programme One ticketing platform for AFCON and CHAN Promise of friendly, organised and secure venues Promise of exciting and unique match day experience -partner with the Ministry of Arts and Culture Media promotions and partnerships Commercial partners programmes and promotions

26. OVERVIEW OF SUPPORT REQUIRED FROM GOVERNMENT

27. GOVERNMENT GUARANTEES A B C ACTIVITYDEPTDETAIL Medical services and campaigns DOHHealth and Medical services at all spheres for event and for CAF delegation, HIV / Aids, Malaria Safety and securitySAPS / NATJOINTS National and event security, accreditation, ticket data and risk management, close Protection for CAF President + 7 VIP ServicesDIRCO & SRSAGovernment is requested to sign a guarantee for access to State Protocol Lounge, Courtesies to Heads of State & Embassy liaison, invitation and ticket management Visas and bordersDHAGovernment is requested to sign a guarantee for work permit for CAF staff & dedicated lanes and ports of entry and visas for accredited persons Tax, Imports and customs NATIONAL TREASURY Government is requested to sign a guarantee for tax relief for import and re-export of CAF goods and Volunteer stipends. Import and Export of Forex and no currency restrictions

28. GOVERNMENT GUARANTEES A B C ACTIVITYDEPTDETAIL TelecommunicationsDOCGuarantee of telecommunication infrastructure and assist with the Media Centres AccommodationTOURISMEnsure that the Hotel Rates are not unduly inflated MarksDTIProtection of marks and IP Rights, marketing Rights and Anti –Ambushing programme. No restrictions on sale and distribution of sale of merchandising TransportDOTGovernment is requested to sign a guarantee for efficient airport operations mass movers and guest support services

29. GOVERNMENT SUPPORT A B C ACTIVITYDEPTDETAIL School ProgrammesDBE Educational programs - schools to adopt one of the 4 teams in each Host City, One Goal, My School Programme Global marketingDept of Tourism & SA Tourism Marketing globally, media tours, spousal program African continentVarious Departments Spectator services, PMA training within SADC, marketing Mass participation and campaigns SRSA, DAC & GCIS Mobilisation, communication, popular programs Social ResponsibilityLOC and Govt Green Games, Child Welfare, Xenophobia Special / Official eventsLOC and Govt Final Draw, Countdown, Host City / Province Exhibitions Banquets, Flag Hoisting (SAFA House and host city / province)

30. THE TOURNAMENT

31. About the Tournament Participating Teams 16 (FIFA World Cup – 32) Dates and number of matches 19 January 2013 to 10 February 2013 32 Matches (FIFA World Cup – 64) 24 Group Stages (6 matches in each group) 8 Knock Out matches 17 match days 24 match sites 2 Matches per day (Group Stages) in same venue in the same City (FIFA World Cup – 2 Matches per day, in different Cities at different times) Host Cities / Stadiums Between 4 to 7 (FIFA World Cup - 9 Cities 10 Stadiums)

32. About the Tournament Training Sites 1 per team (4 per Host City) 1 for Referees (HQ) Team Base Camps None (FIFA World Cup - 32) All group matches for a single team is played in the same City ie: team is based in a City for all its group matches – save for the final group match (FIFA World Cup - a team played its group matches in 3 different Cities) Final Draw End September, early October 2012

33. BIDDING PROCESS

34. CAF AND LOC HOSTING STRATEGY The CAF hosting strategy lists a minimum number of 4 host cities for the Africa Cup of Nations 2013 which can be increased to a maximum of 7 host cities. The LOCs hosting strategy is to ensure a minimum of 4 match days in each host city to ensure an appropriate return on investment for the host city and the host province and cost effectiveness for the LOC. Each group will be based in a single host city. The optimal number of host cities for the tournament is 5. Beyond this number it becomes too risky, too costly and will not achieve the objectives of the LOCs strategy. A higher number of host cities complicates the tournaments logistics and project management.

35. OVERVIEW OF BIDDING PROCESS The process began with a briefing session that was held between the Local Organising Committee and the 8 candidate host cities at SAFA House on 13 March 2012. During this presentation they were given the hosting strategy for the tournament which included the criteria for selection as a host city. The candidate host cities were presented with a set of tournament requirements on 13 March 2012. These tournament requirements set out the detailed requirements for the hosting of matches and events within the host city. The candidate host cities were provided with a presentation template on 19 March 2012 which set out the format of the host city bid presentations to be delivered on 26 March 2012. The candidate host cities were provided with the unsigned host city agreements on 20 March 2012. The candidate host cities were also provided with the responsibilities matrix on 20 March 2012. The candidate host cities presented their bids on 26 March 2012 at SAFA House to an LOC panel comprising the LOC Evaluation Panel and the LOC Management Team.

36. PROCESS The process commenced with a presentation by each of the candidate host cities on Monday 26 March 2012. The LOC Evaluation Panel considered each of the presentations, irrespective whether candidate host cities signed a Host City Agreement or not. The LOC Evaluation Panel considered each of the presentations. Their scoring amounted to 70% of the overall score. The LOC Management Team similarly evaluated each of the candidate host city bids. Their scores amounted to 30% of the overall score. A higher weighting was given to the LOC Evaluation Panels consideration of the host citys readiness to accept the obligations associated with hosting matches which will feed into the LOCs hosting strategy and the mobilisation plan which will seek to increase stadium attendances. Unlike the 2010 FIFA World Cup South Africa, the Africa Cup of Nations 2013 requires higher levels of promotional activity to drive ticket sales. The LOC appointed a team of Transaction Advisors from Edward Nathan Sonnenburg to ensure that the process was in accordance with the demands made to the candidate host cities. The Transaction Advisors kept the scores of each evaluator and aggregated theses scores in respect of each candidate host city. At the end of each candidate host city presentation the members of the LOC Evaluation Panel and the LOC Management Team gave their independent scores to the Transaction Advisors without discussing their individual scores or sharing with other members of their respective panels.

37. PROCESS No member of the LOC Evaluation Panel and the LOC Management Team had access to the aggregate scores or kept an official copy of their own scores. The aggregate scores were presented to the chief executive officer at 16h00 on Sunday 1 April 2012, who subsequently tabled these recommendations to the LOC Board on the same day – who approved for onward submission to the Honourable Minister of Sport for submission to Cabinet for their consideration

38. VENUE SELECTION RATIONALE

39. Venue Selection - Rationale Focus on the use - primarily – of 2010 World Cup Stadiums for AFCON 2013 Consideration of all other venues for CHAN 2014 Using 4 fixed venues for the Group Stages minimizes the overall logistics and mitigates against venue hopping for the teams – which would increase our operational staffing requirements (Travel and Accommodation) to manage the venue hopping Also allows for the Host Cities (and local supporters) to develop closer relationship with the team/s based there It is noted that with the matches as double headers and no two venues used on the same day, the OC will then venue hop, but far easier to manage ONE group than all 16 Teams AND the OC.

40. Venue Selection - Rationale Criteria for final selection of host cities, amongst other things: Demonstrate ability to fill stadiums especially football Games Present a mobilization plan to ensure that we have full stadiums for each series of matches in the relevant Host City and also to evaluate the engagement of the respective Provincial Government and their support. Structure of event Headquarters, 4 venues to host group matches and consideration around the knock out matches to possibly utilize a 5th venue Cost Host City preparedness to cover costs based on their budget projections and to confirm its commitment to underwrite the costs related to the hosting of the teams in its city. In addition, to evaluate the engagement of the respective Provincial Government and their support. Legacy benefits What the benefit are to the residents of the Province / City / Local Football post AFCON. This did not involve infrastructure legacy, but rather soft legacy elements, such as the utilization of local training sites and related facilities to be used by teams Accessibility Of spectators to the venue, travel and accommodation elements – inclusive of spectator experience in the Province / City Government strategic requirements How candidate host cities linked their bid to government strategies in the medium to long term – at both a Provincial and National level. Current infrastructure Ability to host with minimal or no additional infrastructure costs. Effectively utilizing the infrastructure and resources of the 2010 FIFA World Cup

41. THE HOST CITIES Final Ranking and Selection

42. LOC Evaluation Panel (Board) - Scorecard

43. LOC Management Team - Scorecard

44. Final Rankings RankCandidate Host CitySelectedSigned HCA at BidSigned HCA post Bid 1eThekwiniNoYes 2Nelson Mandela BayYesN/A 3RustenburgYesN/A 4MbombelaYesN/A 5JohannesburgNoYes 6Cape TownXNo 7PolokwaneXNo 8MangaungXNo The above ranking and selection required no further intervention, since it adequately deals with a balance between : Inland and Coastal venues small and big cities

45. THE HOST CITIES Africa Cup of Nations, South Africa 2013 as confirmed by the Cabinet of The Republic of South Africa

46. eThekwini – Moses Mabhida Stadium

47. Nelson Mandela Bay – Nelson Mandela Bay Stadium

48. Rustenburg – Royal Bafokeng Sports Palace

49. Mbombela – Mbombela Stadium

50. Johannesburg – FNB Stadium

51. WAY FORWARD with Host Cities

52. Host City / Host Province Inspections for verification and engagement on any outstanding issues Week of 20 to 25 May 2012 Signing of the Guarantees with National Government Meeting with Cabinet appointed Inter Ministerial Committee (IMC) Other cities that had bid – including Kimberly - and did not succeed in being announced as AFCON 2013 Host Cities, are given the first option for CHAN 2014 Kimberly Mangaung Cape Town Polokwane CHAN 2014 Host City / Host Province Inspections for verification and engagement on any outstanding issues Week of 4 to 8 June 2012 FINAL DRAW 26 October 2012 Venue TBC Way Forward – Short Term Key Milestones

53. FACTS and FIGURES

54. Facts and Figures - Infrastructure Host Cities 5 Stadiums5 Training Sites21 Hotels27

55. Facts and Figures – Human Resources Human resources LOC Staffing90 Support Staff9890 Venue Staffing90 Volunteers2500 Stewards3000 Static Security Guards2000 Interns30 Community Safety Stewards1000

56. MAJOR TIMELINES

57. Major Timelines MAY 2012 Tenders for Ticketing, Hospitality and Merchandise RFI for suppliers Launch Countdown and marketing Campaigns JUNE 2012 Tenders for Final Draw and Ceremonies Awarding of the Ticketing and Hospitality agents Determination of the Final 30 Teams for AFCON 2013 JULY 2012 Opening window for Media Accreditation for S. Africa only Ticketing structure and Education Campaign Awarding of the concession and merchandising agents CAF Inspection visit Launch of the Mascot

58. Major Timelines AUGUST Launch of the Theme Song Awarding of the Draw and Ceremonies Agents SEPTEMBER Opening window for Media Accreditation for all OCTOBER 2012 AFCON 2013 INSPECTION VISIT + WORKSHOPS (PMA/SEC/MEDICAL/MEDIA) AFCON 2013 OFFICIAL DRAW FAMILIARIZATION VISIT OF PMA'S Close of Media Acc. for S. Africa only NOVEMBER 2012 Closing of Window for Media Accreditation Deadline for list Accredited Written press to the LOC DECEMBER 2012 Commencement of the Exclusive Use Period (1 st ) Deadline for teams to require extra training

59. Major Timelines JANUARY 2013 Early arrivals of CAF Staff Latest arrivals of teams (13 th ) Opening Match (19 th ) FEBRUARY 2013 FINAL Match AFCON 2013 (10 th ) Operations focus on CHAN 2014 (11 th )

60. ESTIMATED COSTS – CONTRIBUTION REQUESTED FROM GOVERNMENT

61. Department of Sport and Recreational Support Amount Requested Actual cost Accommodation for CAF Delegation 10,048,000 20,096,000 International transportation of teams and CAF delegation 7,129,000 14,258,000 Public mobilisation 25,193,235 Volunteer support 9,992,250 26,067,750 52,362,485 85,614,985

62. ADDITIONAL SUPPORT TO LOC A B C ACTIVITYDEPT & costDETAIL Opening & Closing ceremonies, DAC R80 000 000.00 Production and creatives & support with artists Country and City dressing Brand SA R10 000 000.00 Dressing at Host City /Province TrainingHigher Education R30 720 000.00 SETA training for stewards, internships and volunteers

63. Host Cities Contribution to LOC Budget Total Per City Total cost to LOC Teams accommodation 26,186,200 6,546,550 26,186,200 Local transport for teams and referees 3,179,700 794,925 7,685,700 Accommodation for referees on match days 480,000 120,000 2,319,000 Events security (stadium) 10,343,600 2,585,900 14,444,800 VIP Hospitality 10,400,000 2,600,000 20,580,000 Medical, Disaster management and insurance 6,830,000 1,707,500 15,686,000 Tournament branding 10,000,000 2,500,000 15,750,000 Equipment 10,000,000 2,500,000 14,135,604 Volunteers 8,150,000 2,037,500 26,067,750 85,569,500 21,392,375 142,855,054 Final Draw 6,000,000.00 10,000,000.00

64. Host City/Province Own Cost FINAL Overlays (if any and will vary per venue) 6,000,000.00 1,500,000.00 6,000,000.00 Stadium Hire and operational cost - City initiatives - Marketing - Public viewing / Fan parks Cultural events Ceremonies Public mobilisation Community safety volunteers Host city beautification and protocol routes The above cost lines should be the additional areas of budget to their normal services like Metro police, Waste management, Electricity, Water and Related Costs The cities must also budget for overtime costs, if any.

65. CHAN 2014

66. INTRODUCTION The Confederation of African Football realised over time that it needs to provide greater focus on the development of the continental game, noting in particular the fact that there are many continental players plying their trade off the continent. The decision was then taken to introduce a tournament for all national teams, with a limitation that they were only permitted to select players who play their football in their own domestic competitions. This tournament was then linked directly to the hosting of AFCON – meaning that any country that bids and win the right to host AFCON would be obligated to host CHAN in the subsequent year. Noting this, CHAN is thus scheduled to take place in South Africa in 2014, the year after AFCON 2013.

67. THE TOURNAMENT It is not expected to play CHAN in any of the World Cup Stadiums (with the exception possibly of the opening / closing matches), since the stadium capacities would be too great for CHAN (It desirable to use stadiums in the 15 000 seater range). It does however therefore present good opportunities to utilise additional World Cup legacy facilities to stage these matches with possibly some minor infrastructure adjustment in terms of ensuring these have proper draining and quality pitches, four team dressing rooms and two referees dressing rooms. Tournament is scheduled for January 2014 – in terms of CAF requirements, but no later than March 2014 Format is similar to the AFCON, with 16 teams Greater marketing scope than AFCON, for local companies

68. THE TOURNAMENT Participating Teams 16 (AFCON – 16) Dates and number of matches January 2014 32 Matches (AFCON – 32) 24 Group Stages (6 matches in each group) (AFCON is the same) 8 Knock Out matches (AFCON is the same) 17 match days (AFCON is the same) 24 match sites (AFCON is the same) 2 Matches per day (Group Stages) in same venue in the same City (AFCON is the same) Host Cities / Stadiums Between 4 (AFCON 5 Cities/Stadiums)

69. THE TOURNAMENT Training Sites 1 per team (4 per Host City) (AFCON is the same) 1 for Referees (HQ) (AFCON is the same) Team Base Camps None (AFCON is the same) All group matches for a single team is played in the same City ie: team is based in a City for all its group matches – save for the final group match (AFCON is the same)

70. THANK YOU

71. Q & A