INFORMATION SESSION

Stage 1 Course Works Information

Memorandum

IGC 2021-2026 Strategic Plan

IGC- Preeminent Private Members Golf

Club

Member Information Sessions

Special General Meeting - 7th December

Welcome

Lyndal Plant - Vice President /

Chair Course Master Plan Working Group

Stage 1 Course Works

Gayle Brown - Treasurer

Financial Position

Paul Laxon - Director /

Chair Clubhouse Working Group

Clubhouse Update

Steve Lamerton - CEO

Strategic Plan and

Special General Meeting

Q & A Session

Information Session Agenda

Xx

Xx

Xx

Xx

Xx

New Green 1 to Green 9 (the Green

Loop) as per the Course Architect Design

Meiers Road Dam Expansion

New toilet on the Green Loop

Expanded Member cart storage facility

Upgrade of the overflow carpark and

expansion of the main carpark

Connecting path from Somerset

Indooroopilly to the clubhouse precinct

Stage 1 Course Works 2022/23

Stage 1 Course Works 2022/23

Driven by opportunity to integrate:

• reinstatement of 5 holes around the RV,

WITH

• course water storage improvement AND

• overdue course quality & infrastructure

upgrades across the Green Loop, WITH

• permanent solution to old tip site issues,

AND

• the most cost- efficient use of on-site earth

(i.e. “cut/fill balance”)

Stage 1 Course Works 2022/23

Why do the Green Loop in one phase?

• Gets on with delivering,

o overdue improvements to part of the course not touched for 40 years, and

o water storage improvement

• Most efficient construction & earthworks movement

• Actually less disruptive to members,

o than smaller stages & temporary holes over longer time

• Raises the bar of course quality,

o across greens, fairways, tees, bunkers, habitat

• Gains benefits of completion within 12 months

Stage 1 Course Works 2022/23

Deliver a package of priority works:

• across whole Green Loop, car parks &

cart shed & RV path

• within 12 months,

o without impacting on current Driving Range,

Blue, Gold and Red Loops

• returning to 36 holes in 2023

Dependent on:

• funding, contractor engagement and

statutory approvals

Stage 1 Course Works 2022/23

$11.5M Stage 1 Course Works

Funded via Relevant Funds:

• $20.9M available @ 30 Sep, 2021

• $11.9M projected balance post

completion of course works

Operating Cash

• $6.3M cash @ 30 Sep, 2021 funding for:

o Opex & business as usual capex remaining

9 months subscription period

o $3M budget for Clubhouse renovations

Affordability – 2022/23

Relevant Funds

• $11.5M Expenditure in 2022/23

• $4M Expenditure allowed in 2026, funded by:

o $1.2M Somerset RV Income

o $3.3M Investment Returns @ 5%pa

• $10M Minimum balance

Operating Cash surpluses

Debt Free, except for $250K, 10 yr gov’t

Covid loan funding @ 2.5%pa

Standby funding available

Affordability – to 2026

2021 2022 2023 2024 2025 2026

Operating Cash a/c (Nominal$) 4.3 0.5 0.4 1.2 2.3 1.8

Relevant Funds (Nominal$) 21.2 14.3 11.9 12.8 13.6 10.3

Total Nominal $ 25.5 14.8 12.3 14.0 15.8 12.1

Total Real $ (2021) 25.5 14.5 11.8 13.2 14.6 11.0

0

5

10

15

20

25

30

$ M

illio

ns

Year ending 31 December,

Affordability – to 2026

Relevant Funds

• Somerset RV Income growth

o $3M in 1st decade, $14.5M in 2nd decade

• Investment income compounding

• $31M Development Expenditure allowed

• $10M Minimum balance

Operating Cash growth

• Growth in:

o entrance fees, from 2x multiplier to 3x;

o non-subscription revenue streams, 2% above CPI

• Whilst maintaining annual subscriptions,

operating costs and ongoing capex with CPI

Affordability – 20 years

Affordability – 20 years

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Operating Cash a/c (Nominal$) 4.3 0.5 0.4 1.2 2.3 1.8 3.0 4.3 2.8 4.0 5.6 5.1 6.9 8.9 9.4 11.6 14.0 14.6 17.3 20.1

Relevant Funds (Nominal$) 21.2 14.3 11.9 12.8 13.6 10.3 11.1 12.0 10.0 11.2 12.6 10.2 12.1 14.3 11.5 13.8 16.2 13.6 15.9 18.3

Total Nominal $ 25.5 14.8 12.3 14.0 15.8 12.1 14.1 16.2 12.8 15.2 18.2 15.3 19.0 23.2 20.9 25.5 30.3 28.2 33.2 38.4

Total Real $ (2021) 25.5 14.5 11.8 13.2 14.6 11.0 12.5 14.1 10.9 12.7 14.9 12.3 15.0 17.9 15.9 18.9 22.0 20.1 23.2 26.4

0

5

10

15

20

25

30

35

40

45

$ M

illio

ns

Year ending 31 December,

Conclusion

IGC is in a strong financial position

RV Lease provides a current base and

ongoing income stream for renewed

investment in IGC’s major assets

Clubhouse Update

Ellivo clubhouse concept / detailed

round floorplans

Quantity Surveyor review undertaken

In the process of appointing a builder

(ECI process)

Member information sessions imminent

Construction commencement first

quarter 2022

Strategic Plan 2021 - 2026

Proactive view of development

opportunities

Responds to feedback

Lifestyle factors

Traditions

Core focus on golf

Enhancing the Course

Member satisfaction

Green Loop

Continuous improvement

Investment

Special General Meeting

Resolutions

• Amend the Constitution:

o Electronic voting

o Flexibility for membership category movement

o Credit management of unpaid house accounts

• Clarify the 2017 SGM resolution #2: reimbursement of $367k from Relevant Funds

• Use of Relevant Funds up to $5.5M to complete Stage 1 works not covered by the 2017 resolution

Healthy financial position

Tuesday 7 December 2021

Q & A