AgriSeta AFS for the year ended 31 March 2011 AGM presentation 14 Sep 2011

Audit Opinion Auditor-General issued an Unqualified Audit Report Emphasis of Matter Restatement of NSF Income/Expense VAT incorrectly paid on Learning Grants Reported on performance information – no findings The slides deal in detail with the main set being 12 months ended 31 March 2007 Emphasis relates to common revenue problem being addressed by NT, Dol and AG and accounting treatment of project assets AGM presentation 14 Sep 2011

Employers info – March 2011 17,716 (2010:17,381) registered employers 4,775 (2010:4,424) employers paying SDL levy - Total levies received R161,5M (2010:R142,6M) Applications received by 30 June 2010 (for 2011): WSP’s =1,741 (previously 1,709) Total amount paid towards Mandatory Grants –R76.9m(2010 R72.5m)–Payout % 73%(2010:73%) reduced numbers of levy payers due to R500k threshold AGM presentation 14 Sep 2011

Project Grant Expenditure March 2011 Total project spend: R116.6M (2010 R95.1M) Top 5 projects on spending 65% of Total Project Expenditure Name R-Millions Workers Programmes R 22.4M Learnerships R 19.1M Skills Programmes R 18.1M ABET R 10.2M Non-Levy Enterprises R 6.5M Grouped projects together AGM presentation 14 Sep 2011

Statement of Financial Performance March 2011 INCOME R’000 Levies, penalties & interest 174,068 NSF & special projects income 1,629 Investment and other income 9,681 Total 185,378 SD Levies 80% of employer contributions received from DoL (also includes transfers to/from other Seta’s) NSF & Special projects relates to monies from non SDL funding AGM presentation 14 Sep 2011

Statement of Financial Performance March 2011 EXPENSES R’000 Employer grant Discretionary >Paid >Movement in Accruel 76,905 118,547 (1,918) Admin expenses 20,443 NSF & Special project expenses 1,629 Total 215,606 Net deficit: 30,228 - Admin expenses are within the legislated 10% limit. Significant discussion relating to this in the New/ updated funding regulations (currently activity based costing used) - The deficit indicates spending in the current period of income accumulated previously. This is very necessary to constantly manage down the cash reserves whilst it is important not to commit more funds than are available AGM presentation 14 Sep 2011

Statement of Financial Position March 2011 ASSETS R’000 Property Plant & Equipment 4,448 Intangible assets Receivables 45 1,635 Cash 147,458 Total 153,586 Receivables relate to 2 month levies received after year end AGM presentation 14 Sep 2011

Statement of Financial Position March 2011 EQUITY & LIABILITIES R’000 Grant and Other Reserves 99,018 Capitalisation reserve 3,107 Payable & Provisions 51,009 Grants & Donor Funding 452 Total 153,586 Of the R99.9M R79.5M has been approved for future projects Payable relate to o/s Grant payments of R19.3M and Project and Trade Payables of R11.6M R3.3M Relates to amounts due to SARS AGM presentation 14 Sep 2011

Discretionary Reserve Allocation of Discretionary Reserves Discretionary Reserve Approved By Board Contracted R 97.5M R 87.2M R 73.8M AGM presentation 14 Sep 2011

Cash Flow Statement –Summary March 2011 Net Cash Outflow from operating Activities (11,517) Cash Outflow from Investing Activities (199) Net Decrease in Cash and Cash Equivalents (11,716) Opening Cash Balance 159,174 Total 147,458 AGM presentation 14 Sep 2011

Conclusion Questions? AGM presentation 14 Sep 2011 Note 18 - Pending litigation 2 cases Significant legal fees incurred Note 23 - Transfers in R726k out R434k Other RP, new disclosure in which disclosed transaction (project expenses) with entities which had nominated representative on the Board (important to identify any interest in contracts) AGM presentation 14 Sep 2011

Conclusion Thank You AGM presentation 14 Sep 2011