PORTFOLIO COMMITTEE ON TRANSPORT ANNUAL REPORT 2017 6 November 2017

Manufacturing Capital (p25)

SANRAL PAVEMENT CONDITION - 2017 Type Year V-Good Good Fair Poor V-Poor Length (km) 2017 3,609 10,730 7,001 843 13 % 16.3% 48.3% 31.5% 3.8% 0.1%

Funding Capital (p39)

Intellectual Capital (p45)

Social and Relationship Capital (p49)

Share of Contracts and Work by SMMEs -R4.6bn (p50) All Projects Community Development Projects

SMME Performance

Distribution of Job Opportunities - 19047 FTEs (p50)

Gender Ratio of Workers Receiving Training - 4257 Persons (p50)

Science, Technology, Engineering and Mathematics (STEM PP) at NMMU (p65)

Promotional Social and Relationship Capital (p67)

Tone of Media Reports on SANRAL (P72)

Natural Capital (p75)

Human Capital (p81)

Workforce Profile (p82)

Scholarship Programme – 194 Learners (p86) Recipients by Racial Group Recipients by Gender

SUMMARY: CORPORATE PERFORMANCE 2016/17 (p110) Strategic Objective Total Targets Targets Achieved Reason for Non-achievement of Target Manage national roads 10 Provide safe roads 3 Government’s targeted programmes 9 6 Jobs created (-9.3%)Fewer toll projects awarded than estimated Number of scholarships (-3%) Applicants did not achieve set criteria EE Plan(-1.8%) Slightly delayed employee intake Co-operative working relationships 5 4 TRH Guidelines: awaiting completion as per SANS standards Governance 1

SUMMARY: CORPORATE PERFORMANCE 2016/17 cont’d Strategic Objective Total Targets Targets Achieved Reason for Non-achievement of target Achieve Financial Sustainability 2 Pursue Research, Innovation & Best Practice 3 Training on SA Roads Design Software: awaiting IT hardware upgrade Safeguard SANRAL’s Reputation Pursue and maintain environmental sustainability 1 Total 37 32 = 86%

Annual Financial Statements 2016/17 Volume 2 Section 4

Statement of Financial Position R’billion 2016/17 2015/16 Assets Non-current Assets 345.875 317.116 Current Assets 12.254 17.177 Non-current assets held for sale 0.074 0.020 Total Assets 358.203 334.313 R’billion 2016/17 2015/16 Equity 249.187 231.840 Liabilities 109.015 102.473 Non-current liabilities 97.305 87.282 Current Liabilities 11.710 15.191 Total Equity and Liabilities 358.203 334.313

Statement of Profit and Loss R’billion 2016/17 2015/16 Revenue 13.955 11.474 Other income 1.134 0.860 Operating expenses (17.362) (10.954) Operating (loss)/Profit (2.273) 1.381 Investment income 1.362 0.962 Fair value adj for investment property 0.518 0.099 Finance Cost (4.569) (3.645) Loss for the year (4.962) (1.203) Revaluations 22.310 0.904) Total comprehensive income/(loss) for the year 17.348 (0.299)

Statement of Cash flows R’billion 2016/17 2015/16 Cash generated from operations 1.799 2.588 Interest income 0.902 0.734 Finance cost paid (4.637) (4.097) Net cash from operating Activities (1.935) (0.775) Net cash from investing activities (7.399) (7.605) Net cash from financing activities 6.414 8.391 Total Cash and Cash Equivalents 6.570 9.490

Audit Report 2016/17 Unqualified Opinion Key Audit Matter Outcome Impairment and collectability of trade receivables (toll) AGSA was satisfied that it was fairly valued and adequately provided for where doubt existed. Provisions were appropriate Disclosures were appropriate Revaluation of road network and road structures AGSA was satisfied that revaluation was appropriate and reasonable and fairly valued Going Concern Assessment AGSA that assumption was appropriate and the disclosure of the material uncertainty was in accordance with IFRS

Emphasis of Matter Description Reference Restatement of corresponding figures - Classification of borrowings (current vs non-current) - Bank charges capitalised - Classification of third party funding - Loss on sale of land understated Note 42 Material Impairments – trade and other receivables - significant management estimate and judgement based on criteria disclosed Note 9 Irregular and Fruitless and wasteful expenditure - Reduced from R1.156 billion to R0.425 billion Note 40

Thank You