Second & Third Quarter Report Presentation Portfolio and Select Committees Second & Third Quarter Report Presentation February 2016

Vision: to create Africa’s greatest conservation-based tourism destination driven by community empowerment Mission: To protect, conserve and present the Wetland Park and its World Heritage Values for current and future generations in line with the standards laid down by UNESCO and the World Heritage Act, and to deliver benefits to communities living in and adjacent to the Park by facilitating optimal tourism and related development

High-Level Structure Minister Board Chief Executive Officer Park Operations Director Business Research, Policy & Planning Senior Manager CFO

Synopsis Second Quarter Results Key Performance Indicator Programme Info not provided No milestone Off target Work in progress On target Park Operations 1 8 Transformation 5 Commercialisation/Tourism Corporate Governance 4 Total 2 22

Programme One: Conservation & Park Operations Strategic objective: to ensure the world heritage values are conserved

Performance indicator Achievements/Challenges/ SO: To ensure the World Heritage Values are conserved Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Detection of poaching incidents within 2 weeks 2 weeks 2weeks Environmental monitors programme initiated (30 new monitors deployed to various sections of the Park) Detection of illegal developments within 48 hours 48 hours 48hrs Response to EIA’s and reported developments 100% 5 environmental audits 5 1 Total = 4 15000ha of land rehabilitation 15000ha 15000ha follow-up/ 500ha initial/ 4 wetlands 3875 8421ha 16125ha Total =37172ha cleared in total; Have cleared in excess of target as a result of additional funding

Performance indicator Achievements/Challenges/ SO: To ensure the World Heritage Values are conserved Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Completion of annual game management programme Completion of annual programme Annual game management programme completed Nil offtakes or introductions 3 rhinos 7 rhinos Additional unanticipated translocations completed in quarter 3 as part of the drought management strategy (moved rhino from uMkhuze to other sections of the Park) Applications in buffer actioned 80% 100% Initiate implementation of hydrological solution for St Lucia Estuary Preferred solution initiated Implementation of preferred solution subject to availability of funds Tender concluded and awarded tender process initiated tender awarded Work will commence in May 2016; equipment is being customised for salt water use. The cost of sand removal is much higher than anticipated. Additional funding is being sought. Complete annual infrastructure programme Annual programme achieved 3 tenders issued tenders initiated 3 tenders issued; 2 awarded; 1 failed Q3 = 2 tenders concluded and awarded valued at R140million/1 tender failed – will be reissued in last quarter of the year in three clusters; The drought may become a factor as water is needed for construction; water availability and requirements are assessed on a continuous basis

Programme Two: Transformation Strategic objective: to optimise the empowerment in all activities of the Park in a way that will improve the livelihoods of previously-disadvantaged

Performance indicator Achievements/Challenges/ SO: to improve access to work and income generation activities Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Creation of temporary jobs 1514 1530 380 161 328 Total =1354 The bulk of the jobs were created in quarter one; achievement over target is attributable to the increase in land rehabilitation budgets Permanent jobs from park-related activities 23 10 15 Total =15 2 internal posts were created/a decision was made to retain all the interns under the groen sebenza programme for a further year as part of the board approved human resource development strategy BEE smme’s through iSimangaliso programme 82 50 Programme was revised to reduce the costs of participation per smme enabling the inclusion of more participants BEE procurement 71% 86% 87% Achievement due to additional budgets for landcare – work allocated is 100% BEE/local Training 400 people 100 545 566 Total =1111 people The training programme was accelerated to coincide with revised project roll-out/ as well as for additional/unplanned contractors retained under the additional funding for land care

Programme Three: Tourism/Commercial Strategic objective: to optimise the Park’s revenue generation in a commercially- and environmentally-sustainable manner, that fosters job creation and empowerment of historically-disadvantaged communities

Performance indicator Achievements/Challenges/ SO: to improve financial sustainability Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Increase revenue R11.9m R16.1m R5.38m R5.0m R5.5m Total =R14.3m Maintain visitor numbers @ prior year levels 533451 178257 120617 167299 Total = 401602 The Park is primarily a domestic tourism destination – recessionary factors could be playing a role in visitor numbers/there have been some challenges with the international tourism market due to inter alia visa requirements Implementation of annual environmental education programme 2700 children 2700 675 3150 1610 Total = 7120 The increases is due to a rhino education drive in conjunction with various partners, such as the Kingsley Holgate foundation, who invited iSimangaliso to participate 40 schools in school awards 40 30 Total = 75 The school awards was linked to the rhino awareness drive resulting in a greater number of competition entries

Performance indicator SO: to improve financial sustainability Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Corrective measures Implementation of annual communication programme with claimants and traditional councils 12 Workshops/meetings 3 6 10 Total = 23 Internal decision was made to step-up communication with land claimants and traditional councils Implementation of annual communication programme with groups other than local community eg government, ngos 24 newsflashes 24 9 Total = 19

Programme Four: Corporate Governance Strategic objective: to ensure that iSimangaliso’s operations are properly funded and cost-effectively managed while maintaining an appropriate system of internal control and reporting of accounting, management, and statutory information

SO: effective financial management Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Unqualified audit - Tabling of annual report On 31 August Table annual report Tabled on due date SO: to cultivate an environment that will make iSimangaliso an employer of choice Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Staff retention rate 80% SO: to make research relevant to park management and transform the research sector Performance indicator Baseline Annual target 2015/16 3rd Quarter Target Quarter 2 Quarter 3 Achievements/Challenges/ Corrective measures Reports tabled quarterly 4 reports 1 report 1 Total = 3

Financial Overview

Accounting revenue for the period 31 December 2015 is 0 Accounting revenue for the period 31 December 2015 is 0.5% below budget – this is due to recognition principles of GRAP 23 Park revenue has increased by 18.6% due to the introduction of an overnight levy. Expenditure is 18.2% below budget. This is attributable to cost containment strategies. Accounting surplus for the period ended 31 December 2015 is R10.6m. This is a non-cash surplus and is the result of the accounting policies such relating to grants (GRAP23).

Year to Date Actual Variance Revised Budget Income: R Net Interest Received/(Paid) 1 232 175 134 622 12.3 % 1 097 553 Fees received 1 586 008 (48 791) (3.0)% 1 634 799 Grants 19 309 113 (4 887) (0.0)% 19 314 000 Park Revenue 14 319 611 2 244 611 18.6 % 12 075 000 Sundry Income 426 703 (1 202 035) (73.8)% 1 628 738 Projects net profit/(loss) 22 318 595 (1 401 466) (5.9)% 23 720 061 Total income 59 192 204 (277 947) (0.5)% 59 470 151 Expenditure: Audit Fees 1 121 456 (20 151) (1.8)% 1 101 305 Advertising, Marketing & Promotion 375 491 40 668 9.8 % 416 159 Depreciation 17 111 779 1 208 607 6.6 % 18 320 386 Game Purchases 320 717 (222 680) (227.1)% 98 038 Insurances & Licences 170 769 (15 317) (9.9)% 155 452 Maintenance & Repairs 6 098 402 40 349 0.7 % 6 138 751 Personnel Costs (Net of Charge-outs) 8 769 678 3 281 510 27.2 % 12 051 188 Professional & Tech Fees 3 935 756 1 802 055 31.4 % 5 737 811 Telephone Fax & Internet 352 796 (7 420) (2.1)% 345 377 Travelling Expenses 315 973 145 800 31.6 % 461 773 Workshops & Meetings 183 316 (85 449) (87.3)% 97 867 Other expenses (Net of Charge-outs) 9 871 430 4 674 617 32.1 % 14 546 047 Total expenditure 48 627 563 10 842 588 18.2 % Net Profit/(Loss) 10 564 641 ~

Auditor General Matters IT Framework – iSimangaliso has an IT framework but it is contained in multiple documents. This must be consolidated into one document consistent with the Treasury framework – this is in process

SIYABONGA – THANK YOU