Presentation to the Portfolio Committee on Communications South African Broadcasting Corporation

Contents Introduction and context Corporate priorities Staff issues SABC Chairperson Introduction and context SABC Group CEO Corporate priorities Staff issues News Division equipment Payment of IPO Deputy Chairperson Governance issues CFO The Annual Report 2008 – 2009

Introduction and background Immediate priorities Content quality – on air and on screen Increase commercial revenues Cost-savings to achieve sustainability Strategic phases Turn around strategy Organisational stabilisation Financial sustainability

Corporate priorities External drivers Turnaround Planning Unit SABC must feed into state MTEF planning cycle (corporate plan) Guarantee Agreement reporting (operational plan to DOC and NT) Turnaround strategy and structure Turnaround Planning Unit Oversees: Strategy framework Corporate plan Operational plan Turnaround plan

Staff matters Headcount and wage bill News reader salaries Turnaround imperatives News reader salaries Newspaper allegations

News division equipment Underlying challenge: analogue-digital migration Aging analogue equipment cannot be cost-effectively replaced

Independent producer payments SABC financial crisis 2009 – triggered growth in outstanding liabilities to TV producers Most liabilities settled late 2009-early 2010 following NT guarantee-backed loan January 2010 GCEO established monthly liaison meetings with producer organisations February 2010 Board sub-committee preliminary meeting with producer organisations

Governance issues AG report implementation: update 4 major disciplinary actions Subsidiary middle-management disciplinary actions Additional investigations and disciplinary actions Responses to the Gobodo Report Board review High Court judgment

Chief Financial Officer R Nicholson 23 February 2010 Abridged Results Presentation to Parliamentary Portfolio Committee on Communications Chief Financial Officer R Nicholson 23 February 2010 9

SABC Limited Consolidated Statement of Financial Position-Total Assets SABC Limited Consolidated 10

SABC Limited Consolidated Statement of Financial Position SABC Limited Consolidated 11

Growth Year on Year: Past 4 years 12

SABC Limited Consolidated 2008 / 2009 Financial Performance Statement of Comprehensive Income for the year ended 31 March 2009 SABC Limited Consolidated 13

SABC Limited Consolidated 2008 / 2009 Financial Performance Statement of Comprehensive Income for the year ended 31 March 2009 SABC Limited Consolidated 14

Statements of Changes in Equity SABC Limited Consolidated Statements of Changes in Equity

SABC Limited Consolidated Statement of Cash Flow 16

SABC Limited Consolidated Statement of Cash Flow

SABC Limited Consolidated Notes on the Cash Flow 18

SABC Limited Consolidated Statement of Cash Flow 19

CFO Report March Results Summarised Age Analysis and Commentary SABC - DSO Actuals and Forecasts 81 83 109 87 88 90 91 89 20 40 60 80 100 120 Apr Jun Aug Oct Dec Feb Actual Days Targeted Days 20