1 st Quarterly Performance Report (1Q15) and Financial Position Mr Fundisile Mketeni: Chief Executive Officer (SANParks)

Presentation Content 1.Vision and Mission 2.Performance Reporting Framework /16 SANParks Strategy Map 4.1 st Quarterly Performance Reporting /15 Financial Performance 2

SANParks Vision and Mission Vision A Sustainable National Park System Connecting Society. Mission To develop, expand, manage and promote a system of sustainable national parks that represents biodiversity and heritage assets, through innovation and best practice for the just and equitable benefit of current and future generations 3

Performance Reporting Framework 4 This takes the following into consideration: SANParks legislative mandate and other public obligations Government MTSF priorities such as the NDP; Govt. Outcome 10 and DEA strategic goals; and Board corporate governance directives

2015/16 Strategy Map 5

2015/16 Quarterly Performance 6

Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 1.1 Budget Variance Income Expenditure Break Even 7.3% below budget 7.8% less than budget Overall bottom-line surplus of R20.61 million This was 2.9% (R0.58 million) better than budget of R20.03 million surplus Revenue was 7.3% less than budget of R410.3 million; however 18.7% (R60.0 million) better YoY. Expenses were 7.8% less than budget of R390.3 million; and 1.3% more YoY Income-to-Cost Ratio improved by 15.5% points to 105.7% YoY  Continuous budget monitoring, regular financial forecast to mitigate financial risks and exposure  Improve financial controls and asset management 1.2Gross Operating Tourism Revenue (Year on Year) 9.0% 7.9% Gross Operating Tourism Revenue was 7.9% (R18.8 million) YoY This was 1.1% points below planned target of 9.0% Attributed to a decline of 7.0% (from to ) in the total number of visitors to national parks  Rollout of the Malelane Safari Lodge & the Skukuza Conference Lodge in KNP  Monitoring of the Skukuza Airport yielding the target returns  Shangoni Gate Development Project is in progress  Strategize to grow revenue streams SO1: Optimising Economic Contribution through Tourism and Associated Activities

Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 1.3Total Number of Revenue Generating Products Implemented 00  Several initiatives are currently in their planning phase, and will be implemented in due course. Shangoni Gate in the KNP Skukuza Conference Lodge Malelane Safari Lodge 1.4Fundraising Policy & Strategy Developed and Implemented 25.0%37.5% The process of developing both the strategy and policy for fundraising has been initiated Regular consultation with internal stakeholders to ensure that these are relevant and informative to address critical organisational needs (Rhino poaching; radical socio-economic transformation etc.) The strategy to be aligned with the organisational MTSF goals, hence enabling delivery of organisational legislative and mandatory obligations Difficult to fundraise in the global economic down turn  several fundraising initiatives are being pursued with various organisations, particularly local philanthropic organisations

SO1: Optimising Economic Contribution through Tourism and Associated Activities Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 1.5Accommodation Occupancy 69.0%71.4% Accommodation Occupancy Rate was 2.4% points better than target of 69.0% This is 1.0% point (from 70.4% to 71.4%) improvement YoY Accommodation units sold improved by 2.9% (3 864) YoY Camping Person Nights Sold remain unchanged at YoY Tourism Activities declined by 1.4% (from to ) YoY  Future bookings are being analysed for better forecasts  Sales, marketing and promotional initiatives, particularly at regional levels, will be undertaken to enhance performance in this regard. 1.6 Customer Satisfaction Index 81.5%81.8% Customer Satisfaction Index was 0.3% points better than the target of 81.5% This is 2.3% points (from 79.5% to 81.8%) improvement YoY For the reporting period, customer feedback rate was 28.4%, which is 1.9% less compared to last year This can be attributed to lesser visitor numbers YoY.  Conducting continuous tourism standards quality assessments  Regularly engage customers to understand their needs on our products and services offering.

SO1: Optimising Economic Contribution through Tourism and Associated Activities Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 1.7Total Number of Visitors to National Parks Visitor number to national parks were 7.3% (83 724) less than the quarterly target of This is 7.3% declined (from to ) compared to same period last year Overall, the majority of visitors to national parks remain South African citizens, which is 81.7% of total visitors numbers Number of South African visitor to national park improved by 6.3% YoY. Number of visitors from SADC countries (1.5% of total visitors) declined by 5.7% YoY Number of visitors from other international countries (16.8% of the total) declined by 8.7% YoY  Continued marketing and sales efforts are being undertaken to attract and further increase visitor numbers to our national parks, with particular focus on domestic visitors

Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 2.1METT Score 69.0%74.0% SANParks METT Scoring was 5.0% points above the quarterly target of 69.0% In April 2014, SANParks scoring in 19 national parks was averaged at 80.0% As part of the assessment, a number of corrective measures and additional requirements were identified to maintain and improve the scoring  Areas of improvement identified on the METT audit being reviewed on regular basis for implementation 2.2Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha) Initial/New Areas = ha ha Initial land rehabilitated of alien and/or invasive species was 445.0% ( ha) more than target of ha Follow-up land rehabilitated was 18.6% (6 106 ha) more than target of ha No wetlands were rehabilitated or restored Attributed to a decline of 7.0% (from to ) in the total number of visitors to national parks  Completion and ultimate approval of the Wetlands Project plans will be expedited to enable progress as planned. Follow-up Areas = ha ha Wetlands = m 3 0 m 3 2.3Total Area Added to National Parks (Terrestrial) (ha) Terrestrial = 0 ha0 ha no land had been formally added into the national parks system, however several land acquisition initiatives are currently been undertaken  SANParks three years land expansion plan is under review. Marine = 0 km 2 0 km 2 SO2: Enhanced Conservation and Ecological Integrity of National Parks System

Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 2.4Total Number of Park Management Plans Reviewed and Submitted 00 Although no Park Management plans have been submitted to DEA for approval, the following plans for the following national parks are currently being reviewed Kalahari Gemsbok National Park in the Northern Cape; and Mountain Zebra National Park in the Eastern Cape 2.5Total Number of Species Protection Interventions Implemented 1 Establishing stronghold for rhino safety 1 10 potential private strongholds, and one stronghold associated with a community partnerships, have been identified and evaluated for rhino safety Movements of rhino to safer areas within Kruger National Park and other national parks, are also being regularly evaluated 2.6Total Number of Cultural Heritage Interventions Implemented 1 Restoring, rehabilitating and stabilising Mapungubwe Cultural Heritage site. 1 A Cultural heritage site in Mapungubwe (K2) was also rehabilitated. Preparatory work for nomination of the Khomani San, in Kgalagadi National Park, as a World heritage site are in progress, with necessary consultation to facilitate the process. Furthermore, Ai-Ai Heritage Park, is also earmarked as a World Heritage Site.

SO2: Enhanced Conservation and Ecological Integrity of National Parks System Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 2.7% of new research projects relevant to SANParks key issues 71.0%77.5% Out of 414 research projects registered in three SANParks research nodes 77.5% fall under those categorised as essential and important 2.8Total Number of Peer Reviewed Research Publications 518 A total of 18 peer reviewed researches were published in various reputable academic literature and journals This is 260% (13) more than the set quarterly target of 5 publications Koedoe is an open access scientific journal published by SANParks since 1958 and focuses on protected area science and management to facilitate integration and shared learning. Research Report: Annual SANParks produces a report on all the research work and publications undertaken by its researchers and/or co-authored for the year

SO3: Optimised Socio-economic Beneficiation Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 3.1Total Number of Free Access Entrants 00 No free access to national parks were recorded However several community-based initiative at various national parks are being undertaken This included, but not limited to, preparation of the SA National Parks Week (14 September 2015) project, which will be implemented in across all national parks. 3.2Total Number of Environmental Education initiatives developed 00 no environmental education initiative has been developed as planned However, internal consultation and some research work are being undertaken in preparation for the planned initiatives The idea is to establish environmental education programmes with more impact, in addition to already existing programmes. 3.3Total Number of Participants in Environmental Education Programme Total number of learners participating in SANParks’ Environmental Education Programme was 0.6% (256) better than target of This is however decreased by 9.8% (4 537) when compared to the same period last year. Some educational districts have adopted this programme as part of their learning curriculum.

SO3: Optimised Socio-economic Beneficiation Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 3.4Total Number of Full- time Equivalent Jobs Created EPWP = There were full-time equivalent jobs created through its Expanded Public Works Programme (EPWP) This is 27.9% (262) more than the planned quarterly target of 938 There were 27 full-time equivalent jobs created through other internal job creation programme This is 46.0% (23) below the planned quarterly target of 50 FTEs Other = Total Number of temporary Jobs Created through Socio-economic initiatives 200 No temporary jobs were created through socio-economic initiatives, as most initiatives as still in their planning phase The socio-economic initiatives are those initiatives which are funded from 1% of SANParks Tourism Revenue, and most these initiatives are benefiting communities who are adjoining National Parks 3.6Total Number of SMMEs / Enterprises Supported % (21) more SMMEs were supported through the SANParks - Expanded Public Works Programme than planned 434 SMME's An amount of R33.0 million was spent through this initiative It is envisaged that more SMME and sustainable job will be created during the course of the year

SO3: Optimised Socio-economic Beneficiation Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 3.7Number Community Contractual Agreements in Place 10 No community contractual agreements has been concluded However, several community facilitation processes were concluded with various communities adjoining some of our national parks The facilitation engagements undertaken were: Mashishimale Community Property Association and Mnisi Tribal Authority for the establishment of the wild life economy programme; and Makarapula community for breeding of the Sable at their game reserve and Dixie communal land, which includes mixed game farming at Morgeson communal land Formal letters of commitment were received from these communities.  Formalisation of all planned community agreements are being expedited to ensure proper governance of communal relations with SANParks.

SO4: Enhanced Stakeholder Engagement Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 4.1Total Number of Proactive Media Engagements Articles = proactive media articles were issued, which is three fold than the planned quarterly target of 5 articles Four (4) proactive media engagement events were undertake, which is 25% more than the planned quarterly target of 3 events Through proactive engagements with the media, SANParks had a total of media clips, which accounted for an Advertising Value Equivalent (AVE) of more than R206.6 million Media Events = Media Reputation Rating Positive/ Neutral > 90% 97.0% SANParks media reputation rating (positive/neutral) was 7% points above the planned quarterly target of > 90% For the reporting period, SANParks had media clips with the following rating: 5% Positive = 441 (AVE: R ) 3% Negative = 312 (AVE: R ) 92% Neutral = (AVE: R )

SO5: Effective and Efficient Corporate Governance Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 5.1Auditor General Audit Report Unqualified with no other matters Unqualified with no other matters Organisational accounting records were improved to comply with other regulatory requirements – GRAP 23 The 2015/16 audit plan by our internal auditors (Grant Thornton) has been completed  Implementation of the internal audit plan to be monitored on regular basis, including improvement on internal controls for performance management information 5.2% progress against Risk Response Plan High = 30% Medium = 30% Low = 20% High = 20% Medium = 20% Low = 10% SANParks risk management framework current under review to ensure an in integrated approach on our risk management initiatives 5.3% Compliance with Governance Requirements 50%100% SANParks complies fully with all governance requirement as per the PFMA and National Treasury regulations compliance report checklist Development of a more comprehensive governance requirement tool is currently under review 5.4Total Number of ICT Strategy Initiatives Implemented per Schedule 1 ICT Governance Framework = 50% ICT Governance Framework = 40% Preparatory work to formalise and develop the CoBIT based ICT Governance Framework This involved a consultation with all organisational structures in order to get their input into the framework  Plans are in place for organisational leadership to undergo CoBIT training

SO6: Strengthened Human Capital and Management Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 6.1% of Employees from Designated Employment Equity Groups Black as % of Management = 55.5% 55.2% SANParks had permanent staff members Women in management (Bands D-F) constituted 34.5% (123) out of a total of 357 incumbents People with disabilities accounted for 1.2% (48) of the entire permanent staff complement.  Employment Equity (EE) Plan is being implemented across parks. Women as % of Management = 34.0% 34.5% People with Disabilities = 0.9% 1.2% Total Male: Female Ratio = 1.8% 1.2% 6.2% of Employees Meeting Minimum Educational Requirements (C and Upper) 93%97.3% Total number of employees who meet minimum educational requirement was 97.3% (3 928) Most of employees not meeting minimum educational requirement of the jobs they occupy is are based within the ranger corps section of the organisation, as lance corporals (Graded at C Lower).  Numerous skills development, including the process of recognition of prior learning (RPL), are current being undertaken to ensure that staff have qualified for their occupancies.

SO6: Strengthened Human Capital and Management Performance Indicator 2015/16 Quarterly Target Actual PerformanceComments 6.4% Success Rate at CCMA 80.5%100% Fourteen (14) CCMA cases were reported for the reporting period One (1) case was ruled in favour of SANParks, One (1) case was withdrawn was with drawn and closed as the applicant chose not to pursue the case any longer.  Efforts are being undertake further educate employees and management on the importance of adhering to labour practice regulations and laws 6.5% progress against implementation of Skills Development Programme 25%20% Training needs assessments process was completed The Annual Training Plans for 2015/16 has been completed and submitted to the CATHSSETA To date 571 SANParks employees have commenced with their respective training The skills development initiatives undertaken by SANParks range from ABET/AET; Accommodation Services Learnerships; Artisan Training; Hospitality Training, and Computer Training A budget of R4.7m has been side aside in this regard, as per the Skills Levy Act requirement.

21 Summary of 1 st Quarterly Performance

Financial or Trading Position 22

23 Income Statement as at 30 June 2015

Statement of Financial Position as at 30 June 2015

25 SANParks Operating Surplus / (Deficit) Quarterly performance is based on management accounts incremental per month IndicatorBudgetActual Variance % Equivalent Value Total IncomeR millionR million8.5%(R34.57 million) Total Expenses (R million) (R million)7.9%R30.72 million Bottom Line surplus / (deficit)R20.03 millionR20.61 million2.9%R0.58 million

Thank You 26