1. South African Rugby Union Presentation To the Portfolio Committee on Sport and Recreation Tuesday, 24 March 2015

2. Contents a)3.1 Progress made in transformation, incl women’s rugby, participation by persons with disabilities, provincial demarcations, and future transformation objectives and transformation operational plan; b)3.2 Regulation of utilising foreign players in domestic league c)3.3 Performance plans of provincial academies d)3.4 Development programmes; e)3.5 Overview of governance and related issues; f)3.6 Annual report, including financial statements. 2

3. 3.1 Transformation - Overview The challenge since 1992 has been to change the historically-based racial structures within South African rugby. We have made big advances and can point to significant achievements. – SARU has had a black president since 1998 – The Springboks’ leading try scorer of all time is black – Four of the last nine players of the year have been black – We’ve had a black Springbok coach and a black Currie Cup winning coach – Our national teams vary between 20% and 75% in terms of black representation – And in April 2014 the EPG published their report on holistic transformation which showed rugby coming out on top with the only “pass” mark awarded with a score of 71% But it has not been enough…. 3

4. 3.1. Transformation – This was happening 4

5. 3.1 Transformation - Overview In November 2012 we held a Transformation Indaba and issued a Transformation Charter signed by all Unions We presented a draft Transformation Plan aligned to the National Sports Plan to that Indaba We followed up with two years’ worth of workshops and “audits” of the member unions and of rugby as a whole In August 2013 we announced demographic targets for the Vodacom Cup We showed the draft to the Sports Minister and SASCOC and they were happy The Plan was approved by our General Council in December but already things had begun to change 5

6. 3.1 Transformation – A corner was turned SARU Transformation Indaba November 2012 Quotas introduced to Vodacom Cup for 2014 6

7. 3.1 Transformation – SARU’s Strategic Transformation Plan – It’s not just about “numbers on the field” – It is multi-dimensional, effecting all areas of rugby – It is measurable and will be measured – It is time-bound – There is an annual implementation plan 7

8. 3.1 Transformation – SARU’s Strategic Transformation Plan – And it is backed by SARU’s own tailor-made, software IP (intellectual property) ‘Footprint’ – an athlete management system ‘Stratus’ – performance analysis software ‘Blueprint’ – coaching templates for South African rugby ‘Talent ID’ – an app for scouts and selectors ‘e-filing’ – Not SARS but a real-time dashboard for the Strategic Performance Management department to monitor against the STP 8

9. 3.1 Transformation – SARU’s Strategic Transformation Plan 1.Demographic Representation - To change SARU’s demographic profile at provincial and national level on and off the field of play. 2.Access to the Game - To ensure rugby is accessible to all who wish to participate, including women, disabled persons and people in rural areas. 3.Skill and Capability Development - To create development pathways for players, coaches, referees and administrators to improve productivity and performance levels. 4.Performance - To deliver competitive and world-class performances on and off the field of play by focusing on quality and the application of the principle of merit. 5.Community Development and Social Initiatives - To create effective interventions in order to increase participation through community development and social responsibility initiatives. 6.Corporate Governance - To establish effective rugby administrative structures in order to comply with good corporate governance. 9

10. 3.1 STP Snapshot (Demographic Dimension) Increase black participation in all SARU’s amateur and professional tournaments – whether age group or open age – to 50% by 2019 Increase black participation in all SARU’s national representative teams to 50% by 2019 Increase black participation in all SARU’s national representative team managements and in the SARU board to 50% by 2019 Increase black coaches and referees involved at provincial and national level. 10

11. 3.1 Transformation - What that looks like 11

12. 3.1 2015 Implementation Plan – Demographics KPI’SACTIVITIESRESPONSIBLETIMELINE Increased black representation in: Vodacom Cup – 35% Currie Cup – 30/35% Super Rugby – 30% U21 – 30/35% U19 – 30/35% Increased Black representation in: Junior Springboks – 35% Springbok Sevens – 40% Springboks – 30% Increased Black representation in Provincial & national Team Management structures – 40% Increased Black representation in executive and board structures – 50% Agree and signoff scorecards with Unions. SISSA monitor domestic and international competitions. Monitor off field demographic targets agreed by Union scorecards. Draft data into E-Filing. Compile monthly report for CEO. Prepare executive reports on request. MG JD, MG MG, SM 12 Jan – 01 March. 12 Jan – 30 Nov.12 Jan – 30 Oct. 12 Jan – 30 Oct 12 Jan – 30 Nov 12

13. 3.1 2015 Implementation Plan – Access KPI’SACTIVITIESRESPONSIBLETIMELINE Increase participants – 60 000 through GIR. 320 GIR trained community coaches. 100 trained community volunteers. 14 Community Rugby Centres. Schools leagues – 30 non-traditional rugby schools 4 club Easter Tournaments 2 Heritage tournaments 1 Fish Factory Tournament Zibi Sevens – 36 schools Womens Rugby tournaments & competitions. Wheelchair rugby administration Assist Unions with new online development system. Review and evaluate online applications. Allocate funding according union KPI’s. Introduce GIR to 14 Unions. Assist Unions to structure community GIR workforce. Monitor and review monthly GIR reports. View online Union reports and give feedback. Monitor Union targets. Compile, review and analyse Union deliverables. Executive report MG, SM, VG, JL. MG, VG MG MG, SN, VG MG, SN, SM MG, SM, VG, SN 12 Jan – 01 March. 12 Jan – 01 Oct. 12 Jan – 30 Oct. 12 Jan – 30 Nov. 15 Nov. 13

14. 3.1 2015 Implementation Plan – Skills KPI’SACTIVITIESRESPONSIBLETIMELINE Train and accredit 1500 Level 1 coaches. Train and accredit 1000 Level 2 coaches. Train 500 new Sevens coaches. Train and accredit 700 Level 1 referees. Train and accredit 300 Level 2 referees. Train and accredit 200 Club administrators. Evaluate online Union applications and allocate funding. Coordinate training programmes with coaching and referees departments. Monitor Union targets and online progress reports. Compile training data in E-Filing and verify with coaching and referees departments. Coordinate Club-wise training with service providers and CATHSETA. Compile administrators data in E-Filing. Compile executive report MG, SM, VG. MG, VG MG, SM MG, VG MG, SM MG, SM, VG 12 Jan – 01 March. 12 Jan – 01 Oct. 12 Jan – 30 Nov.. 12 Jan – 30 Nov. 12 Jan - 30 Nov. 12 Jan – 30 Nov. 15 Nov. 14

15. 3.1 2015 Implementation Plan – Performance KPI’SACTIVITIESRESPONSIBLETIMELINE 18 Provincial HP Community rugby squads (Iqhawe). 14 Trained strength and conditioning coaches in communities (one per coaching centre). 40% black representation in junior elite squads. Domestic Competitions. International Competitions – World Rugby Rankings. 100% black player throughput to Vodacom Cup. 35% black player throughput to Currie Cup. 20% black player throughput to Super Rugby. 100% SA U20 players contracted by Unions. 35% Black employees in middle and senior management. 25% procurement from targeted service providers. Evaluate online Union applications and allocate funding according KPI’s. Monitor and compile Provincial and International performances. Transfer performance data in E-Filing. Monitor elite player development and transfer data to E-Filing. Monitor employment equity and preferential procurement targets and transfer data to E-Filing. Compile executive report. MG, SM, VG. MG, VG MG, SM MG, VG, SM MG, SM 12 Jan – 01 March. 12 Jan – 01 Oct.. 12 Jan – 30 Nov. 15 Nov. 15

16. 3.1 2015 Implementation Plan – Communities KPI’SACTIVITIESRESPONSIBLETIMELINE Number Awareness programmes. Number job creation programmes. Number CIS programmes. 52 Functional community rugby structures. Evaluate online applications and allocate project funding. Monitor online Union reports. Draft project results data into E-Filing. Compile executive reports. MG, SM, VG. MG, VG MG, SM 12 Jan – 01 March. 12 Jan – 30 Oct..12 Jan – 30 Oct..15 Nov. 16

17. 3.1 2015 Implementation Plan – Governance KPI’SACTIVITIESRESPONSIBLETIMELINE 14 Union specific administration training. 14 Union specific workforce programmes. Number Union CEO’s and staff capacity building programmes. Number Union Executive Board/ Council capacity building programmes. Number Union ant-doping training. Evaluate online Union applications and allocate project funding accordingly. Monitor Union online reports. Draft information into E-Filing. Provide guidance and resource material where necessary. Compile executive report. MG, SM, VG. MG, VG MG, SM 12 Jan – 01 March. 12 Jan – 30 Oct..12 Jan – 30 Oct..15 Nov. 17

18. 3.1 Transformation - Women Target of 50% women in administrative roles at national and provincial level by 2019 Target of 50% black women in all national and provincial women’s teams by 2019 In January 2014, a selected group of women received contracts for the first time in the history of the game in South Africa (67% black). A High Performance programme was initiated for women. Various trial and international tour games were organized in the build-up to the IRB Women’s Rugby World Cup A comprehensive conditioning and coaching programme was introduced in partnership with the Department of Sport and Recreation of the Eastern Cape and NMMU High Performance Academy Following the IRB Women’s Rugby World Cup, a strategic decision was made to concentrate on Sevens rugby at a National Level while a comprehensive development programme would be initiated from U16 level for the Fifteens code It was decided to align Women’s Rugby with our Men’s Sevens structures and it now runs parallel to the Men’s programme on a ‘same-standard’ approach at all levels All contracted players are based at SAS in Stellenbosch and now have a full time coach, conditioning coach, physiotherapist / team manager 18

19. 3.1 Transformation - Women Springbok Women Sevens team qualified as a core team on the World Series In Women’s XVs rugby, SARU has initiated the ‘Youth Training Centre’ programme. SARU will establish six Youth Training Centres in selected regions as part of Phase 1 in 2015 Each Youth Training Centre will have the following facilities available for players: Gym; Training Field; Medical Facilities; Lecture (team) rooms; Change rooms; Canteen. Youth Training Centres will act as hubs for players in surrounding areas and deliver SARU accredited coaching programmes, conditioning programmes and medical/nutritional programmes for contracted or selected players to assist in their holistic development from age 16 through to senior rugby. For the first time SARU will host U16 and U18 Elite Youth Weeks (Grant Khomo/Craven Week) for women’s rugby in 2015 SARU will assist all unions with coaching and conditioning programmes for all players from U16 upwards to improve the overall standard of performance at elite tournaments such as the Youth Weeks 19

20. 3.1 Transformation - Disabilities Target of 2% persons with a disability employed as part of the STP Wheelchair Rugby is an associate member of SARU and routinely attend our General Council Supported financially with allocations of R450 000 in both 2014 and 2015 The South African Deaf Rugby Association is in the process of applying for membership SARU has made an allocation of R200 000 to support them in 2015 20

21. 3.1. Transformation – Demarcation SARU’s constitution was amended in December to recognise geopolitical boundaries A plan to align provincial rugby union boundaries with geopolitical boundaries is being formulated for presentation to SASCOC Rugby is played in all 52 districts 21

22. 3.1 SARU Community Rugby Structures within municipal boundaries 5 5 4 4 1 1 1 1 3 3 1 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 2 2 1 1 1 1 1 1 1 1 3 3 1 1 1 1 1 1 1 1 1 1 3 3 4 4 6 6 2 2 3 3 1 1 1 1 1 1 1 1 1 1 1 1 3 3 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Active New Inactive 6 5 3 4 6 11 20 14 Eastern Cape11 Border7 EPRU4 Free State6 3 Griffons3 Gauteng14 Blue Bulls4 Falcons4 Golden Lions6 KZN11 Sharks11 Limpopo5 Blue Bulls5 Mpumalanga4 Pumas4 North West3 Leopards3 Northern Cape5 Griquas5 Western Cape20 Boland8 SWD6 WPRFU6 Grand Total79 22

23. 3.1 Rugby Communities in Municipal Districts NoProvinceUnionMetropole/District (Number)DC NoSARU Development Community Status (Active/Inactive/incomplete) 1.Western CapeWPRFUCape Town MetropoleCGuguletuActive 2.Western CapeWPRFUCape Town MetropoleCKayalishaActive 3.Western CapeWPRFUCape Town MetropoleCAthloneActive 4.Western CapeWPRFUCape Town MetropoleCElsies revierActive 5.Western CapeWPRFUCape Town MetropoleCNyangaActive 6.Western CapeWPRFUCape Town MetropoleCMitchell’s PlainActive 7.Western CapeBolandWest Coast1West Coast/Saldanha /VredenburgActive but incomplete 8.Western CapeBolandWest Coast1Swartland /MalmesburyActive 9.Western CapeBolandWest Coast1North West /ClanwilliamActive but incomplete 10.Western CapeBolandCape Winelands2Central /Wellington/PaarlActive 11.Western CapeBolandCape Winelands2Witzenburg /CeresActive 12.Western CapeBolandCape Winelands2Breederiver 1/WorcesterActive 13.Western CapeBolandCape Winelands2Breederiver 2 /RobertsonActive 14.Western CapeBolandOverberg3Overberg /Caledon, BredasdorpActive 15.Western CapeSWDOverberg3Hessequa(Swellendam/Riversdal)Active 16.Western CapeSWDEden4MosselbayActive 17.Western CapeSWDEden4GeorgeActive 18.Western CapeSWDEden4Knysna /PlettenbergbaaiActive 19.Western CapeSWDCentral Karoo5OudthoornActive 20.Western CapeSWDCentral Karoo5Beaufort WestActive 21.Northern CapeGriquasNamakwa6Springbok/NamakwaActive 22.Northern CapeGriquasPixley Ka Seme7De AarInactive 23.Northern CapeGriquasSiyanda District8Upington/OranjeActive 24.Northern CapeGriquasFrancis Baard9Kimberley (3 satellites)Active 25.Northern CapeGriquasJohn Taolo Gaetsewe45Kuruman /Van DrutenActive but incomplete 26Free State Mangaung Mangaung MetropoleMBloemfontein -BathoActive 27.Free State Manguang MetropoleMBloemfontein –RocklandsActive 28.Free State Manguang MetropoleMBloemfontein –HeidedalActive 29.Free StateGriffonsLejweleputswa District18Welkom & AllanridgeActive 30.Free StateGriffonsFezile Dabi District20KroonstadActive 31.Free StateGriffonsThabo Mofutsanyana19BethlehemActive 32.Eastern CapeBorderAmatole12AliceActive 33.Eastern CapeBorderAmatole12StutterheimActive 34.Eastern CapeBorderOR Tambo15MthathaActive 35.Eastern CapeBorderAmatole12King Williams TownActive 36.Eastern CapeBorderChris Hani District13QueenstownActive 37.Eastern CapeBorderBuffalo City MetroBUFEast LondonActive 38.Eastern CapeBorderAlfred Nzo44Mount Ayliff, Mount Frere, NtabankuluActive New 39.Eastern CapeEPRUJoe Qabi14MaclearActive 40.Eastern CapeEPRUNelson Mandela Bay MetroNMAPE Metro/ Kwanobuchle/Northern AreasActive 23

24. NoProvinceUnionMetropole/District (Number)DC NoSARU Development Community Status (Active/Inactive/incomplete) 41.Eastern CapeEPRUCacadu District10Graaff Reinet, MiddelburgActive 42.Eastern CapeEPRUCACADU10Grahamstown, Steytlerville, Somerset EastActive 43.GautengFalconsEkurhuleniEKUKempton Park (Merlin)Active 44.GautengFalconsEkurhuleniEKUDuduza Tsakane (Kestrel)Active but incomplete 45.GautengFalconsEkurhuleniEKUReiger Park (Praire)Active 46.GautengFalconsSedibeng42Vanderbiljpark Hawk (South)Active 47.GautengGolden LionsWest Rand48KagisoActive 48.GautengGolden LionsCity of JohannesburgJHBJabulani /Bramfisherville/ProteaActive 49.GautengGolden LionsCity of JohannesburgJHBAlexandraActive 50.GautengGolden LionsCity of JohannesburgJHBEnnerdaleActive but incomplete 51.GautengGolden LionsCity of JohannesburgJHBEldorado ParkActive but incomplete 52.GautengGolden LionsCity of JohannesburgJHBRaidersActive 53.GautengBlue BullsCity of TshwaneTSHCluster A SoshanguveActive 54.GautengBlue BullsCity of TshwaneTSHCluster B Inner CityActive 55.GautengBlue BullsCity of TshwaneTSHCluster C AtteridgevilleActive 56.GautengBlue BullsCity of TshwaneTSHCluster D MamelodiActive 57.LimpopoBlue BullsCapricorn35CapricornActive 58.LimpopoBlue BullsMopani33MopaniActive 59.LimpopoBlue BullsVhembe34VhembeActive 60.LimpopoBlue BullsWaterberg36WaterbergActive 61.LimpopoBlue BullsSekhukhune47SekhukhuneActive 62.KZNSharksuThukela23Bergville Winterton,Emangwaneni,LoskopActive 63.KZNSharksSisonke43Kokstad,Underberg,IxopoActive 64.KZNSharksUgu21Port Shepstone, GamalakheActive 65.KZNSharksUmgungundlovu22Edendale Mkhambathini/MphophomeniActive 67.KZNSharksAmajuba25Newcastle Madadeni, Osizweni, DannhauserActive 68.KZNSharkseThekwiniETHSydenham, WentworthActive 69.KZNSharksuThungulu28Empangeni Esikhaweni, NgwelezaneActive 70.KZNSharksZululand26Pongola, Ulundi,Vryheid, NongomaActive 71.KZNSharksUmkhanyakude27Matubatuba,Jozini,HluhluweActive 72.KZNSharksUmzinyathi24Umdlovana, Ngubevu, HlazakhaziActive 73.KZNSharksIlembe29Stanger, MandeniActive 74.North WestLeopardsDr Kenneth Kaunda40Matslosana EastActive 75.North WestLeopardsDr Kenneth Kaunda40Matslosana WestActive 76.North WestLeopardsNgaka Modiri Molema38MafikengActive 77.MpumalangaPumasGert Sibande30ErmeloActive but incomplete 78.MpumalangaPumasGert Sibande30StandertonActive 79.MpumalangaPumasNkangala31Witbank /MiddelburgInactive 80.MpumalangaPumasEhlanzeni32Matsulu, MalelaneActive 24 3.1 Rugby Communities in Municipal Districts

25. 3.2 Foreign Players 25 The terms of participation for South African franchises specify as follows: “Foreign” is defined as non-SA passport holders (with the exception of holders of passports from other African countries) Currently there are three (3) foreigners among the 200 players currently declared in Super Rugby squads (and one non-SA African from Kenya).

26. 3.3 Provincial Academies 26 SARU manages four regional academies, established with support from National Lottery Board, in Boland, SWD, EP and Border. There are a further 12 private or provincial rugby academies nationwide over which SARU has no jurisdiction Achievements of the Four SARU Academies in 2014 98 players were trained in the academies on a full-time basis Ratio of 80% black players All academy players studied or participated in scholarship programmes Programmes included: Rugby, Conditioning, Academic Studies, Life Skills, Mentorship, Medical Services, Nutrition 94% of these players participated in provincial age group rugby (under 19 and under 21 Currie Cup) 24 played at Senior Professional level (Vodacom Cup, Currie Cup and Super Rugby) and have been contracted in various unions. Employment was created for 41 persons as coaches, managers, medical personnel.

27. 3.3 Provincial Academies 27 SARU Academies in 2015 The programmes at the four SARU academies are continuing, with several new recruits being selected This Programme has expanded to involve the full time academy - as well a wider high performance component More than 160 players will form part of these four academies, with a ratio of over 80% generic black players The best generic black players in other academies are also being identified, supported and monitored The aim is to deliver 60 players to the professional level All 16 rugby academies in South Africa will be assisted with programmes and guidelines of International Standard

28. 3.4 Development Programmes Governance Union Specific administration projects – Workforce training (Human Resources) Capacity building of CEO, senior and middle management Capacity building – anti-doping and player welfare Capacity building – Employment equity and preferential procurement Participation Increase access and Participation in targeted primary schools – Get Into Rugby (GIR) programme according to the Long Term Player Development (LTPD). Targeted Community/Township leagues Targeted Community/ Township tournaments and competitions International exchange programme 28

29. 3.4 Development Programmes Training and Education Training and accreditation – Level 1, level 2 and sevens coaches Training and accreditation – Administrators Training and accreditation – Level 1 and 2 referees Long Term Coaching Development (LTCD) programme Social Community Community awareness programmes with NGO's Volunteer and job-creation programmes Mass Participation Programme (MPP) with NGO's Performance Community based junior high performance programmes. (IQHAWE) Targeted schools – Coca-Cola Schools Excellence Programme Elite Player Development (EPD) u16 & u18 29

30. 30 General Council Executive Council Audit & Risk HR & Remunerations Finance National Judicial Selectors Games & Policies TransformationConstitutional Elite Player development Standing Committees Ad Hoc Committees Meets 3 x pa/2 reps x 14 unions SARU president is chairman SARU’s highest authority The business’s shareholders. The ‘board’ of SARU. 7 members elected by General Council, 2 independents, player organisation rep and CEO and CFO Independent Drives strategy and direction; looks after bottom line; recommends appointments; Reviews performance; manages business Has global oversight; ratifies major appointments; approves budgets; determines competition structures 3.5 Governance

31. General Council  The Regions with two votes each  The President with one Vote – Highest Authority within Organisation – Ratifies Policies and Constitution changes – Ratifies Competition formats and Regulations – Approval of a strategic plan; – Approval of the annual budget; – Adoption of the annual financial statements; – Approval of the remuneration of the members of the executive council and the auditor. – Appointment of an auditor; – Appointment of the chief executive officer. – Ratify the appointment of National Coach – Election of Member of Executive Council Executive Council  Seven Elected Members  Two Independent Member Appointed  One Member from Players Association  CEO and CFO – Manage and Control the Commercial Business of Rugby – Appoints two Independent member with special Skills as determined from time to time. – Manage and Control all competitions – Appointment of Sub Committee – Responsible for: overseeing project management and the implementation of strategy; complying with the requirements of good corporate governance; providing strategic leadership; and overseeing SARU’s financial affairs. 3.5 Governance - Mandates

32. Term of Reference Internal monthly financial reporting Management of revenue streams (including Commercial Properties, Sponsorships and Broadcasting Rights) Financial Policies Financial results, budgets, cash flow management and financial planning Ad-hoc matters which have a financial or commercial impact Financial Support Members of the Committee Boet Fick – Chairman Executive Member – Director General -Department of the Chief Minister – LEBOWA KGOMO – Secretary – Department of Agriculture – Limpopo – Chairman – Development Cooperation – Limpopo Louis Von Zeuner –( Independent Players’ Assoc. Representative) – Group Executive Director of Absa Group – Independent Non-Executive Director – EQSTRA LTD – Director – Mastercard – Independent Non-Executive Director – Telkom Monde Tabata - Independent Executive Member – MD of Megapro Pty LTD – Director – Peermont Global Group Mark Alexander – Executive Member – Chairman – SA Rugby Travel (Pty) ltd – Chairman – SANZAR – Director – Morvest (Pty) Ltd 3.5 Governance - Finance

33. Terms of Reference Integrated reporting Combined assurance Internal audit Risk management External audit Ethics and Organisational Integrity Conflicts of Interests Members of the Committee Mputumi Damane (Chairman) – Group Chief Executive Officer - CEF Ltd. – Chief Executive Officer – Nuclear Energy Corporation of SA – Chairman – Strategic Fuel Fund – Board Member of Petro Raymond Fenner (independent) – Member - South African Institute of Chartered Accountants (SAICA) – Associate Member - Institute of Risk Management, South Africa (IRMSA) – Member - Institute of Risk Management, South Africa (IRMSA) Edna van Harte (Independent) – Dean of the Faculty of Military Science at the University of Stellenbosch Sinoxolo Jodwana (Independent) – Monitoring /Auditing Officer – Nedbank Investments (Pty )Ltd – Internal Auditing Dipploma Pat Kuhn – MD – Nortans (Pty) Ltd – Director of Companies 3.5 Governance – Audit & Risk

34. Terms of Reference To evaluate and consider specific proposals made for remuneration and other conditions of employment by the appropriate executive, non executive persons and elected members of the Executive Council. Consider and make recommendations to the Executive Council on specific remuneration packages for other members of management put to the Committee. Inquire into and comment on specific policies including and relating to Recruitment and Remuneration, Performance Management, Employment Equity and Transformation, Training and Development, Succession Planning and make recommendations on these issues to the Executive Council after consulting the appropriate executives and management. Members of Committee Monde Tabata - Independent Executive Member – MD of Megapro Pty LTD – Director – Peermont Global Group Jonathan Goldberg (Independent) – CEO – Global Business Solutions – Co-author – Broad-Based Black Economic Empowerment :Final codes and scorecards 2008 – Co-author – Cracking Broad-Based Black Economic Empowerment – 2005 Ms. Nadia Mason (Independent) – Leadership & Management Development; Executive Coach; Organisational Development Facilitation; People Development Consultant & Executive Search. 20+ years of experience in Human Capital Management, Business and Entrepreneurship Vic Christian (Independent) 3.5 Governance – HR & Remuneration

35. Terms of Reference Advise on all legal or quasi-legal matters as required from time to time; Act as the committee to which the Executive Council in terms of clause 15.13 of the Constitution has delegated its disciplinary powers: Has the power to take any steps as it may deem fit against any rugby body or person, as defined in the Constitution. Prepare and recommend amendments and/ or additions to the Constitution, Regulations or Rules or prepare and recommend new regulations, rules or documents that may be required from time to time; Interpret any of the provisions of the Constitution, Regulations or Rules of the Union; and In general to act as mandated or required by the Executive Council, the Chief Executive Officer or the Manager: Legal from time to time Members of the Committee Judge. Lex Mpati (Chairman) – President of the Supreme Court of Appeal – Acting Judge - Constitutional Court of South Africa Peter Ingwersen – Commissioner Small Claims Court – Advocate to High Court – Director of Companies Adv. Jannie Lubbe – Senior advocate – Associate Director - KPMG Advisory – Associate Director –KPMG Forensic Audit 3.5 Governance – National Judicial

36. 3.6 Annual Report and Financials 36 Revenue (% share in 2013) Group 2013 R Group 2012 R Union 2013 R Union 2012 R Broadcasting Rights (43%) 340,864,209307,140,378340,864,209307,140,378 Sponsorship (42%) 339,243,194272,315,371339,204,999272,315,371 Grants from IRB Trust (35) 22,711,76623,742,13322,711,76623,742,133 Home Tests (7%) 52,230,00068,655,34052,230,00068,655,340 Merchandising royalties (1%) 11,713,54618,747,97711,713,54618,747,977 Government grants (0%) 2,049,757553,8702,049,757553,870 Lottery grants (3%) 20,215,223241,49920,215,223241,499 Springbok Supporters Club membership (1%) 5,762,5416,274,098-- Other income (0%) 3,799.33710,644,5565,678,27011,059,689 Investments (0%) 2,189,1426,492,9032,143,7736,460,573 800,778,715714,808,125796,810,543708,916,830

37. 3.6 Annual Report and Financials 37 Expenditure (% share in 2013) Group 2013 R Group 2012 R Union 2013 R Union 2012 R Broadcasting rights and other allocations to provinces (21%) 170,212,582151,289,798170,212,582151,289,798 Commercial and Marketing (29%) 229,664,733236,669,234227,886,371231,593,559 Corporate affairs (2%) 13,042,24812,279,95613,042,24812,279,956 Development (12%) 94,691,63968,478,55992,122,01968,478,559 Governance (1%) 10,714,20210,712,13610,714,20210,712,136 High performance (25%) 194,084,503149,269,660194,012,502149,269,660 Human resources (1%) 6,330,4415,066,2126,279,5745,066,212 Office of the CEO (1%) 9,089,5868,844,5109,089,5868,844,510 Operations and finance (4%) 32,010,95431,751,55132,006,19231,751,551 Referees (4%) 34,156,19134,199,21934,195,94634,199,219 Total operating expenses (793,997,079)(708,560,835)(789,561,222)(703,485,160) Interest paid (1,640,385)(74,813)(1,640,385)(74,813) Profit before taxation 5,141,2516,172,4745,608,9365,356,857 Taxation 5,995,316(3,825,089)6,074,063(3,757,753) Total comprehensive income 11,136,5672,347,38511,682,9991,599,104