Quarter 4 2015/16 & Quarter 1 2016/17 Report Presentation Portfolio and Select Committees Quarter 4 2015/16 & Quarter 1 2016/17 Report Presentation August 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 Fourth Quarter 2015/16 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 6 Corporate Governance 4 Total 23

Synopsis First Quarter 2016/17 Results Key Performance Indicator Programme Info not provided No milestone Off target Work in progress On target Park Operations 1 7 Transformation 4 Commercialisation/Tourism 5 2 Corporate Governance Total 18

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

Performance indicator Achievements/Challenges/Corrective Measures SO: To ensure the World Heritage Values are conserved Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Detection of poaching incidents within 2 weeks 2 weeks Achievement: 2 weeks n/a Detection of illegal developments within 48 hours 48 hours Achievement: 48 hours Response to EIA’s and reported developments 100% Achievement: 100% 5 environmental audits 5 Achievement: 5 1 new 0 follow-up Achievement: 1 new 15000ha of land rehabilitation 15000ha 15000ha follow-up/ 500ha initial/ 4 wetlands Achievement: 41618ha follow-up Challenges: securing funding for new clearing Corrective Measure: developing a strategy for funding and/or improving the efficiencies with the available funds 3750ha Achievement: 1108ha Challenge: delays in receipt of funding from DEA:NRM impacts on roll-out schedule Corrective Measure: work will be accelerated in future quarters; discussions scheduled with DEA to try to resolve the matter

Performance indicator Achievements/Challenges/Corrective Measures SO: To ensure the World Heritage Values are conserved Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Completion of annual game management programme Completion of annual programme Annual game management programme completed Achievements: Game introduction plan achieved Challenges: The drought is deepening – water may have to be trucked in – this will have cost implications Corrective Measures: n/a n/a Applications in buffer actioned 80% Achievement: 100% Initiate implementation of hydrological solution for St Lucia Estuary Preferred solution initiated Implementation of preferred solution subject to availability of funds Achievement: Tender concluded and awarded Challenge: contract is for 100k cubic metres. Challenge sourcing funding for additional work Corrective Measure: Additional funding is being sought/ tender is a cost effective solution Moved to programme four

Performance indicator Achievements/Challenges/Corrective Measures SO: To ensure the World Heritage Values are conserved Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Complete annual infrastructure programme Annual programme achieved Achievement: Annual programme achieved Challenges: environmental compliance by one of the contractors and delays in the programme Corrective measure: penalties and weekend work Moved to programme 3 # Park management meetings with conservation mgr n/a 1 Achievement: 1 # environmental monitors deployed 30 Achievement: 30 # km coastline cleaned 320 Achievement: 320 % completion of annual controlled burning programme Achievement: 0 % completion infrastructure maintenance programme 25% Achievement: 25%

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/Corrective Measures SO: to improve access to work and income generation activities Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Creation of temporary jobs 1514 1530 Achievement: 1547 440 Achievement: 767 Contractors have exceeded commitments iro job creation targets Permanent jobs from park-related activities 23 10 Achievement: 15 n/a BEE smme’s through iSimangaliso programme 82 50 Achievement: 94 BEE procurement 71% Achievement: 93% Training 400 people Achievement: 1425 1200 days Achievement: 419 Challenges: delays with NRM funding and implementation translate into delays in training # people in skills development programmes 120 Achievement: 126

Performance indicator Achievements/Challenges/Corrective Measures SO: to improve access to work and income generation activities Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 # bursaries awarded n/a 24 Achievement: 26 Permanent jobs from park-related activities 23 10 Achievement: 15 BEE smme’s through iSimangaliso programme 82 50 Achievement: 94 BEE procurement 71% Achievement: 93% Achievement: 77

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/Corrective Measures SO: to improve financial sustainability Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Increase revenue R11.9m R16.1m Achievement: R18.5m R4.35m Achievement: R3.24m Challenges: recessionary factors Corrective Measures: promotion of area to encourage South African residents who would ordinarily travel abroad to travel to iSimangaliso Visitor entries 533451 Achievement: 537173 125000 Achievement: 102394

Performance indicator Achievements/Challenges/Corrective Measures SO: to improve financial sustainability Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 % lapsed concessions retendered n/a 80% Achievement: 0% All licences operational – tenders will be issued next quarter % implementation of plan wrt tourism developments 10% Achievement: 10% # annual events 1 Achievement: 1 % implementation of annual PR plan 25% Achievement: 25% Implementation of annual infrastructure programme Refer prog 1 10

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

Performance indicator Achievements/Challenges/Corrective Measures SO: to make research relevant to park management and transform the research sector Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Reports tabled quarterly 4 reports Achievement: 4 n/a % new applications approved relevant to park mngmt 10 Achievement: 60% Implementation of effective monitoring programme for the park Review report completed Achievement: review report completed # visitor market surveys Percentage implementation of plans to mitigate impact of identified threats to rare and endangered species and ecosystems 10% Achievement: 10% Percentage completion of plans requested/required within the financial year Achievement: 25%

SO: effective financial management Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Unqualified audit Achievement: Unqualified audit Tabling of annual report On 31 August Achievement: Tabled on due date n/a Assessment of and percentage implementation of business improvements SO: to cultivate an environment that will make iSimangaliso an employer of choice Performance indicator Baseline Annual target 2015/16 Achievements/Challenges/Corrective Measures 2016/17 Target Qu1 Staff retention rate 80% Achievement: 100% 90% Achievement: 90%

2015/16 Financial Performance 2014/15 R REVENUE 186 696 270 126 379 483 Revenue from Non-Exchange Transactions 165 757 281 108 904 320 Grants 160 849 220 105 644 945 Management Fees 1 731 009 1 097 642 Administration Fees 3 073 509 2 062 332 Donations 103 281 Penalties 262 99 400 Revenue from Exchange Transactions 20 938 989 17 475 163 Interest income 1 764 874 1 036 061 Park revenue 18 521 610 15 843 871 Other income 652 505 595 231 EXPENDITURE 124 299 422 116 065 217 Co-management agreement payments 1 307 471 1 136 685 Project costs 37 778 894 32 166 883 Personnel costs 9 697 003 10 554 585 Depreciation:   property, plant & equipment 18 389 182 18 276 390 intangible assets 19 945 1 511 investment property 4 484 005 4 444 791 Professional fees 7 485 872 5 739 723 Bad debts written off 70 205 Loss on disposal of fixed assets: 9 876 2 940 355 43 8 Other operating expenses 45 127 131 40 734 082 SURPLUS FOR YEAR 62 396 848 10 314 266

2016/17 Q1 Financial Performance Mar-16 May-16 Jun-16 Actual Working capital:   Current assets R 303.3 m R 261.7 m R 236.4 m bank & cash R 300.7 m R 260.1 m R 234.7 m other R 2.7 m R 1.7 m Current liabilities R 278.6 m R 237.1 m R 211.3 m deferred grants R 215.2 m R 194.9 m R 173.9 m R 63.4 m R 42.2 m R 37.4 m Net current assets/(liabilities) R 24.8 m R 24.6 m R 25.1 m Current ratio 1.09 1.10 1.12 Non-current assets: Property, plant & equipment R 332.4 m R 331.7 m R 330.2 m Investment property R 86.9 m R 86.1 m R 85.7 m Other R 0.1 m R 419.4 m R 417.9 m R 416.0 m Capital: Value of assets taken over R 265.7 m Accumulated profits/(losses) R 178.4 m R 176.8 m R 175.4 m R 444.2 m R 442.5 m R 441.1 m Debt ratio 14.3 % 9.5 % 8.5 %

2016/17 Q1 Financial Performance Month 3 Months to date Jun-15 Jun-16 Budget to Jun-15 to Jun-16 Operating results:   Income R 5.3 m R 4.6 m R 8.7 m R 15.8 m R 26.2 m grants R 2.1 m R 2.2 m R 6.7 m Park revenue R 2.0 m R 0.9 m R 1.4 m R 1.9 m R 3.4 m R 4.3 m projects net profit/(loss) R 0.5 m R 0.6 m R 3.8 m R 3.9 m R 11.3 m other R 0.7 m R 1.3 m R 4.0 m Expenditure R 4.7 m R 6.0 m R 6.5 m R 18.8 m R 19.5 m depreciation R 2.4 m R 5.7 m R 7.3 m maintenance & repairs R 1.2 m R 3.0 m R 2.7 m personnel costs (net) R 0.4 m professional fees R(0.0)m R 2.8 m R 1.8 m R 1.1 m R 1.0 m R 4.9 m R 6.3 m Net profit/(loss) R(1.4)m R(3.0)m Grants to total income 40.1 % 48.6 % 25.6 % 40.8 % 42.4 % Profit to revenue 13.0 % (29.4)% 11.5 % (19.0)%

STAFF DEMOGRAPHICS Qu4 (15/16) & Qu1 (16/17) BASELINE: TARGET: QUARTER 2 QUARTER 3 AFRICAN Male 9 - 15 Female 11 WHITE 3 6 INDIAN COLORED % African % Female % Mngmt - Female % PWD 46%bl 63% 60% 0% 65% 51% 55% 2% 71% 57% 59%

SIYABONGA – THANK YOU