SOUTH AFRICA 2010

 Global Football Economy  The Event  Planning  Cities & Infrastructure  Legislative timetable Contents

SOUTH AFRICA: AN AFRICAN WORLD CUP A LAND OF INFINITE POSSIBILITIES Where else can you feel nature’s beautyfeel nature’s beauty experience first-world technologyexperience first-world technology face a fiery passion for sport, andface a fiery passion for sport, and live the world’s only political miraclelive the world’s only political miracle

GLOBAL FOOTBALL ECONOMY - U$D 360 Billion MANCHESTER UNITED SUCCESS -$317m in sales: 40% to global market -Expand global fan base through exhibition matches DIFFICULT INDUSTRY -Real Madrid : $42m for Beckham – ended only 4 th in League after spending $86m for Zidane – Abrahamovitch paid $230m for Chelsea & players

GLOBAL FOOTBALL DOMINANCE - TV Country %

THE EVENT SA awarded one of the most prestigious global events: 2010 Soccer is one of the most followed sports worldwide Sports events are a top mobiliser of tourists across the globe 2010 will create development opportunities for SA, the SADC Region and the African continent (marketing, investment, tourism, etc.)

PRE-1990POST GERMANY 1974 GERMANY 2006 SOUTH AFRICA # OF FIFA MEMBERS ENTERING WORLD CUP COMPETITION NUMBER OF PRELIMINARY MATCHES NUMBER OF TEAMS IN WORLD CUP FINAL 1632 NUMBER OF FINALS IN WORLD CUP MATCHES 3864 NUMBER OF SPECTATORS1.7 million3 million2.78 million THE 3 HISTORICAL PERIODS OF THE WORLD CUP

 Global Football Economy  The Event  Planning  Cities & Infrastructure  Legislative timetable Contents

THE EVENT 64 Matches 32 Teams 28 – 43 Days 13 Stadia 2.78 million tkts to be sold 40 Billion TV Audience 200 Viewing Hours

WC EVENT# of MATCHES # of TICKETS (mn) PRESTIGE TICKETS % of PRESTIGE TICKETS % of TOTAL TICKETS SOLD AVG TICKET PRICE (CHF) TOTAL REVENUE ($ mn) USA , %100% France ,0008.5%100%1, – Korea - Japan ,0003.4%100%1, – 200 (est.) 2006 – Germany (proj) , %100%1,926N/A 2010 – South Africa , %89% N / A N/A WORLD CUP TICKET SALES

THE EVENT: FOOTBALL FANS SPEND Licensed merchandise Transport Meals Accommodation Entertainment TOTAL SPECTATOR SPEND R9.8 BILLION

 Global Football Economy  The Event  Planning  Cities & Infrastructure  Legislative timetable Contents

To deliver a World Class 2010 FIFA World Cup TM four key pillars need to be built. Social Legacy is a high priority on the Government’s agenda Four Key Pillars World class Mega Event competencies and delivery A stable image with good governance and financial integrity with strong corporate and government relationships World class competitive teams in all age groups Social upliftment across key communities MEGAEVENTSMEGAEVENTS ASSOCIATIONASSOCIATION TEAMSTEAMS SOCIALSOCIAL Through improved football development SAFA will contribute to social upliftment (e.g. skills transfer, improved funding) First Economy Second Economy Social Security Net Pres. Mbeki’s State of the Nation Address Three Platforms Encourage growth and development of First Economy – formal economy (e.g. raise the rate of investment, reduce the cost of doing business in SA, speed up skills development) Address challenges of Second Economy – informal economy (e.g. launch Expanded Public Works Programme, improve financing related to the Urban Renewal and Rural Development Programmes, improve micro-crediting, increase support of agricultural activities) Build a Social Security Net to meet the objective of poverty alleviation (e.g. new agency to improve social grant systems, increase number of children eligible for child support, and implement school nutrition programmes) Objectives Core response to the struggle against poverty and underdevelopment

The 2010 FIFA World Cup TM offers a unique opportunity for South Africa to advance the three Platforms set out in President Mbeki’s State of Nation address  Expanded partnerships with government to promote growth and economic development  Event is expected to generate 21 billion rand into the economy, with direct spending estimated at 12.7 billion rand  Increase in Tourism  Tournament expected to attract 400,000 visitors to the country during its 43 day duration  Improvement of infrastructure for long-term growth  Upgrading as well as the building of new stadiums in the country  Transportation infrastructure Potential Benefits to be derived from 2010  Creation of new jobs and improving sustainable livelihoods  More than 160,000 jobs are expected to be created from hosting the event  Accelerating BEE by procurement and sourcing policies  Economic benefits will lead to greater self-sufficiency of citizens – developing Small Business sector  Transfer of skills and training of key people  Ama 2010 and FIFA Secondments and Observers  Development of strong regional identity  Collaboration with First Nations  Upgrading of safety and security by increasing number of police force  High-profile example of potential to generate economic growth, while respecting environmental sustainability  Promoting sports development and healthy lifestyles and providing education related to 2010  Awareness of 2010 and implementation of school nutritional programmes  Critical Success Factors of healthy lifestyles for sportsmen – address HIV/AIDS  Geography of 2010 participating nations Pres. Mbeki’s Three Platforms First Economy Second Economy Social Security Net Core response to the struggle against poverty and underdevelopment

A holistic and comprehensive approach is needed to successfully stage the event which will ensure long term Economic Impact Marketing, Sponsorship & Media Sponsor (ViK) Management Marketing & advertising Licensing Rights Protection Ticketing & Sales —International & Domestic —Merchandise & Accommodation Communications Media operations and Production Hospitality Venues & Infrastructure Venues Accommodation International media center Hotels Airports Rail and bus stations Conversion to municipal use Venue services (waste, food etc) Economic Impact IT, Internet & Telecom Solution Architecture & Integration Event systems Internet Hardware and software Testing & technical rehearsals Event network (voice and data) Network equipment & cabling Telephones and fax machines Wireless Transportation and Logistics Transportation infrastructure Public transportation Transportation planning —Officials —General public Transportation operations Warehousing and logistics Materials management Direct Benefits —Event specific (Broadcast rights, Tickets, Licensing) —Induced (Tourism, Local Business, Tax Revenues) Indirect Benefits —Employment from construction, tourism, and event-related jobs Event Co-ordination Sports management Opening & Closing/other events Visitor services Accreditation Volunteer training and coordination Officials Cultural program Security General staff/management services