AGM presentation 17 Sep 20141

Audit Opinion Auditor-General issued an Unqualified Audit Report  Financial Statements are not materially misstated  Opinion is not given on Performance Information  Material adjustments to commitments were processed in the current year AGM presentation 17 Sep

Employers info – March ,401 (2013: 18,355) registered employers 4,147(2013: 5,068) employers paying SDL levy - Total levies received R269,9M (2013: R223,1M) Applications received by 30 June 2013 (for 2014): WSP’s =1,759(2013: 1,835 ) Total amount paid towards Mandatory Grants – R54.9M (2013: R99.9M) Payout is 72% AGM presentation 17 Sep 20143

Levy Growth AGM presentation 17 Sep 20144

Levies Analysis YearAmount R’000Percentage Growth % % % % % % AGM presentation 17 Sep 20145

Project Grant Expenditure March 2014 Total project spend: R144.2M (2013: R104.0M) 38.7% increase Top 10 projects on spending 71% of total Project Expenditure 6 Name R-Millions P4 Learnerships 18.2R16.5M P4 InternsR13.6M FET InfrastructureR24.8M P7 Learnerships 18.1R13.2M P7 Commodity OrgsR7.5M P4 Apprenticeship and ABETR4.5m 4.1 Mentoring and support for Land ReformR7.2M P4&P7 Skills Delivery AdministrationR5.4M P7 Skills Programmes 18.1R4.6M P4 Graduate PlacementsR5.7M

Statement of Financial Performance March 2014 INCOME2013/14 R’ /13 R’000 % Movement Levies, penalties & interest 273,565225, % NSF & special projects income 24,70215, % Investment and other income 9,347 8, % Total307,614249, % AGM presentation 17 Sep 20147

Statement of Financial Performance March 2014 EXPENSES2013/14 R’ /13 R’000 % Move Employer grant Discretionary >Paid Movement in Accrual FET Infrastructure 54, ,577 9,856 24,844 99, ,417 2,598 0 (45.00%) 8.05% % 100% Admin expenses and finance costs 31,53428, % NSF & Special project expenses24,70215, % Total255,449247, % Net Surplus/(Deficit):52,1652, % 8

Statement of Financial Position March 2014 ASSETS2013/14 R’ /13 R’000 % Move Property Plant & Equipment4,5024,627(2.7%) Intangible assets Receivables 5 17, ,780 (68.75%) 64.29% Cash and Bank213,847173, % Total236,064188, % AGM presentation 17 Sep 20149

Statement of Financial Position March 2014 EQUITY & LIABILITIES2013/14 R’ /13 R’000 % Move Grant and Other Reserves 168,584116,41944,81% Capitalisation reserve3,107 0% Payable & Provisions61,64167,572(8.78%) Grants & Donor Funding 2,733 1, % Total236,065188, % AGM presentation 17 Sep 2014

Discretionary Reserve AGM presentation 17 Sep 2014 YearDiscretionary Reserve Approved By Board Contracted 2013/14R167,44MR145,28MR133,26M 2012/13R115,15MR108,18M R77,20M % Movement 45.41%34.29%72.62% Allocation of Discretionary Reserves

Cash Flow Statement –Summary March Cash Flow Statement2013/14 R’ /13 R’000 Net Cash Outflow from operating Activities 40,848(2,063) % Cash Outflow from Investing Activities (312)(169)(84.62%) Net Decrease in Cash and Cash Equivalents 40,410(2,301)(1856,19%) Opening Cash Balance173,437175,738(0.13%) Total213,847173, %

Conclusion 13 Questions?

Conclusion Thank You 14