Annual Report 2019-2020

MESSAGE FROM

THE TREASURER

It is my privilege to present the annual report for the financial year ending June 30, 2020 (FY20) highlighting some of the achievements and progress we’ve made in key areas, as well as measures taken to address challenges and capitalize on opportunities that emerged over the past 12 months. Furthermore, there is a new Management Discussion & Analysis (MD&A) section this year, outlining a short narrative and comparison to the prior year financials, which we hope will provide more color to Members. A Tale of Two Halves FY20 was a classic tale of two halves. After the opening of Tradewinds in early July 2019, we developed significant momentum in the key drivers for usage and revenues. As the statistics presented in the new MD&A section show, foot fall, covers, usage, revenue and thus monthly spend all increased quarter over quarter from Q4FY19 to Q1FY20 and then to Q2FY20. With the onset of Covid-19, and despite the related safe distancing and safety measures (large gatherings prohibited, buffets cancelled, outlet capacity decreased substantially, etc.), Q3FY20 usage statistics and revenue were only down marginally. Q4FY20 statistics fell off significantly with the closure of The Club for one week for deep cleaning and the closure of the facilities during the circuit breaker. However, it is worth noting that despite the closure of The Club for 2 ½ months, usage was still 44%, meaning that 44% of the Members had spending at The Club during this time (virtual fitness classes, TAC2Go!, Essentials2Go!, etc.)

Members in the first two quarters of the fiscal year (vs 259 in all of FY19), then 97 in Q3FY20 despite the Covid-19-related restrictions imposed to keep our Members and staff safe. It speaks of the resilience of our Membership team that we even managed to attract 27 new Members during Q4FY20 while The Club was closed for the vast majority of the time, and operated with a “no guest” policy in place. This also speaks volumes about the attractiveness of The American Club to Members, both new and existing. Resilience Our beloved staff, who give The Club its heart and feelingof home, havebeen resilient through all the challenges and have been on the front lines working tirelessly to keep our facilities welcoming, while keeping our Clubhouse safe. Given that 36 of our staff have remained in Malaysia since the Malaysian border was closed under the Movement Control Order, Management has slightly reduced hours, closed The 2 nd Floor and opened Grillhouse only on weekends. Again, this demonstrates the resilience of our Members (who have continued to use The Club facilities since we reopened in June) and staff (who have been flexible about being trained and deployed to working in multiple outlets to cover for staff stuck in Malaysia). We ended the year with 3,316 Members, well ahead of budget and also ahead of what was projected under the original redevelopment financial model. This success came in large part from the Membership team, who worked tirelessly despite shifting market conditions, competition, Covid-19, Clubhouse closure and circuit breaker. Over the last five years,

A similar storyline played out on the new Membership front. We attracted 241 new