State Information Technology Agency Annual Financial Results Presentation for the year to 31 March 2007

Agenda Business Review Financial Review Question & Answer session Peter Pedlar, Chief Executive Officer (Acting) Financial Review Mfanyana Salanje, Chief Financial Officer Question & Answer session

Peter Pedlar Chief Executive Officer (Acting) Business Review

Introduction First full year new operating model in effect Customer satisfaction index up 20 points to 63% level Employee satisfaction levels improve by 10.17% Inaugural GovTech conference creates ICT thought leadership platform

Financial performance Revenue growth of 15.6% - R3 357bn Gross profit up 33.9% - R712m Surplus improved by 76.4% - R143.5m

Business highlights Procurement services 65 contracts worth R1 527bn awarded 86% of contracts awarded to BEE vendors Strategic partnership and funding model Customer satisfaction index

Strategic projects e-Government IFMS Municipal ICT blueprint ID Track & Trace SMS System (Home Affairs) Interactive Voice Response System IFMS Integrated Development Environment Tender Procurement Module Tender Municipal ICT blueprint Three proof-of-concept projects underway

Human capital Turnover of 9.11% below industry average of 12% 96% of staff trained as per requirements Youth Internship Programme ICT graduate training programme Trained 358 youth at R29 830m investment

Directors’ report PFMA issues Going concern Changes in directorship

Conclusion GovTech commitments e-Government implementation FOSS implementation Municipal ICT blueprint IFMS project

Mfanyana Salanje Chief Financial Officer Financial Review

Statement of financial position - Cash and cash equivalents 15% increase in cash on hand. 25% decrease in ring-fenced cash. 1% increase on total cash and cash equivalents. Rm

Cash flow statement (in Rand million) 2007 2006 Cash flows from operating activities 165.5 506.8 Cash flows from investing activities (148.7) (81.4) Cash flows from financing activities (5.2) Movement in cash and cash equivalents 11.6 420.2 Opening balance - cash and cash equivalents 1 085.1 664.9 Closing balance - cash and cash equivalents 1 096.7 1085.1

Statement of financial position - Trade and other receivables Rm Perspective Target Stretch target Actual performance Debtors’ days <55 days 50 days 58 days

Statement of financial position - Current assets Ageing of trade receivables Trade receivables - R718.8m

Statement of financial performance - Capital expenditure

Statement of financial position - Capital expenditure breakdown Rm

Statement of financial position - Current liabilities Trade and other payables (in Rand million) 2007 2006 Trade payables 566.2 511.3 Other payables 131.2 70.3 Total 697.4 581.6 Perspective Target Stretch target Actual performance Liquidity ratio 1.5:1 2.0:1 1.6:1

Statement of financial performance - Revenue Perspective Target Stretch target Actual performance Revenue growth 10.6% 12.0% 15.6%

Statement of financial performance - Gross profit Perspective Target Stretch target Actual performance Gross profit margin 20.0% 22.5% 21.0%

Statement of financial performance - Operating expenses

Statement of financial performance - Net surplus for the year Perspective Target Stretch target Actual performance Net profit margin 3% 5% 4%

Creation of wealth - 2007

Distribution of wealth - 2007

Question & Answer session

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