1. Department of Public Enterprises DATE - 11 June 2016 Page 1 BUSINESS PLAN Presenter:Dr M. Eugene Mokeyane Venue:Cape Town Date:02 April 2003

2. Department of Public Enterprises DATE - 11 June 2016 Page 2 PRESENTATION STRUCTURE DPE Vision and Mission DPE Strategic Goals DPE Budget Structure Planned Projects Per Strategic Goal MTEF Budget Allocations

3. Department of Public Enterprises DATE - 11 June 2016 Page 3 VISION AND MISSION VISION Ensure excellence in shareholder management MISSION To provide an enhanced SOE shareholder management system, inclusive of restructuring in support of promoting economic efficiency towards a better life for South Africans

4. Department of Public Enterprises DATE - 11 June 2016 Page 4 STRATEGIC GOALS FOR THE 2003/04 – 2005/06 MTEF PERIOD 1.To ensure effective SOE performance monitoring 2.To ensure an effective SOE stakeholder management 3.Ensure effective execution of SOE restructuring transactions 4.To achieve DPE internal excellence

5. Department of Public Enterprises DATE - 11 June 2016 Page 5 BUDGET STRUCTUREMinisterMinister Director-GeneralDirector-General MinistryMinistry Restructuring Programme 2 Restructuring Management and Administration Programme 1 Management and Administration Programme 1 Performance Monitoring and Benchmarking and Benchmarking and Strategic Analysis and Strategic Analysis Programme 3 Performance Monitoring and Benchmarking and Benchmarking and Strategic Analysis and Strategic Analysis Programme 3 Corporate Services Internal Audit CommunicationsCommunications Financial Management EnergyEnergy TransportTransport DefenseDefense ForestryForestry Strategic Analysis Corporate Governance Financial Performance 3a 3b IPO Office 2a 2b

6. Department of Public Enterprises DATE - 11 June 2016 Page 6 PLANNED PROJECTS PER STRATEGIC GOAL STRATEGIC GOAL 1To ensure effective SOE performance monitoring PLANNED PROJECTS  Implementation of Protocol on Corporate Governance and remedial work identified through Corporate Governance audits in SOE’s;  Development and implementation of the Investment Map of SOE’s;  Research on Socio Economic and other best practice and benchmarks for each SOE, as well as the development of a database for the said benchmarks;  Finalize the post-restructuring transactional management (ESOP’s, Community trust and Empowerment except BEE);

7. Department of Public Enterprises DATE - 11 June 2016 Page 7 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 1 Cont. To ensure effective SOE performance monitoring PLANNED PROJECTS  Implementation and monitoring of the Preferential Procurement Policy framework at an SOE level;  Enhancement and Implementation of Financial Performance Model in conjunction with the State Owned Entity Database system, which will generate SOE Performance reports.

8. Department of Public Enterprises DATE - 11 June 2016 Page 8 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 2To ensure an effective SOE stakeholder management PLANNED PROJECTSDevelop a Stakeholder institutional Framework through: Agreement on the NFA Stakeholder Compact Partnerships and MOU’s.

9. Department of Public Enterprises DATE - 11 June 2016 Page 9 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 3Ensure effective execution of SOE restructuring transactions PLANNED PROJECTS Transport Sector Transnet End-State Viamax Autopax VAC perway/VAC Africa Merger FreightDynamics Transtel/Esitel Merger Foundries Fleetcall Spoornet > Orex Options > MetroRail (Passenger Rail Integration) > Luxrail Concessioning Ports Concession > Durban Container Terminal > Other Ports Restructuring Projects SAA Restructuring Model SAA/SAX Merger

10. Department of Public Enterprises DATE - 11 June 2016 Page 10 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 3 (continued) Ensure effective execution of SOE restructuring transactions PLANNED PROJECTS Energy Sector Eskom Enterprises Rationalization > Roshcon > Rosherville Vehicle Services ESI Restructuring Phase 1 Defence Denel BAE SEP Rationalization of Denel non-strategic assets Forestry Sector Safcol 1 (Komatiland) Safcol 2 (Amatola) Safcol 3 (MTO Southern/Western Cape) Safcol 4 (Cape Conversion)

11. Department of Public Enterprises DATE - 11 June 2016 Page 11 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 3 (continued) Ensure effective execution of SOE restructuring transactions PLANNED PROJECTS Other Projects Government Printers Aventura Disposal Transmed Disposal Marine Data System TH/EFC Disposal Alexkor Disposal

12. Department of Public Enterprises DATE - 11 June 2016 Page 12 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 3 (continued) Ensure effective execution of SOE restructuring transactions PLANNED PROJECTS Process enhancement: A detailed restructuring procedure manual that was adopted in 2000 is currently under revision to ensure that processes are continuously improved in terms of generally accepted practices Guidelines have been compiled to formalise the governance and integrity procedures applicable in the restructuring bid processes Transactions marketing and management processes and guidelines developed for maximum shareholder value realization

13. Department of Public Enterprises DATE - 11 June 2016 Page 13 PLANNED PROJECTS PER STRATEGIC GOAL – CONT. STRATEGIC GOAL 4To achieve DPE internal excellence PLANNED PROJECTS [Units involved: Ministry, Corporate Services, Financial Management, Communications, Internal Audit] A range of projects outlined in the business plan have been planned to provide strategic support to DPE line of business through effective, efficient management and administration in pursuit of DPE’s vision of excellence in shareholder management. Projects include: > Protocol alignment > Consolidated internal communication strategy > Community development strategies

14. Department of Public Enterprises DATE - 11 June 2016 Page 14 MTEF BUDGET ALLOCATIONS – VOTE 9 MTEF Allocations for Financial year 2003/2004 R 60 205 000 Responsible Minister: Minister for Public Enterprises Administering Department: Public Enterprises Accounting Officer: Director-General of Public Enterprises

15. Department of Public Enterprises DATE - 11 June 2016 Page 15 BUDGET BREAKDOWN PER PROGRAMME – CURRENT TREND PROGRAMMEBUDGETED AMOUNT 2002/03 EXPENDITURE 2002/03 as at 27 March 2003 AdministrationR 26 018 000R 27 421 000 Restructuring of State Owned Enterprises R 207 583 000R 183 524 000 RestructuringR 9 390 000R 5 953 000 Initial Public OfferingR 198 193 000R 177 571 000 Performance Monitoring and Strategic Analysis R 15 477 000R 8 721 000 Performance Monitoring and Benchmarking R 11 330 000R 6 662 000 Strategic AnalysisR 4 147 000R 2 059 000 DEPARTMENTAL TOTALR 249 078 000R 219 666 000

16. Department of Public Enterprises DATE - 11 June 2016 Page 16 ANTICIPATED ROLL-OVERS – EXPENDITURE TO 31/03/2003 TOTAL BUDGET FOR YEAR 2002/03= R249 079 000 EXPENDITURE TO 27/03/2003= R219 665 892 VARIANCE AS AT 27/03/2003= R 29 413 108 ANTICIPATED ROLL-OVERS (IPO – RELATED MATTERS)= R19 428 578 AMOUNT TO BE SPENT 31/03/2003= R 9 984 530

17. Department of Public Enterprises DATE - 11 June 2016 Page 17 ANTICIPATED ROLL-OVERS – BREAKDOWN ComputershareR 7 000 000 IT ConsultingR 90 284 Telkom Website lineR 12 000 MSL (Manning, Savage & Lee)R 39 045 DIABO TrustR 8 087 249 Khulisa TrustR 4 200 000 R19 428 578

18. Department of Public Enterprises DATE - 11 June 2016 Page 18 BUDGET BREAKDOWN PER PROGRAMME FOR THE 2003/04 – 2005/06 MTEF PERIOD PROGRAMMEBUDGETED AMOUNT 2003/04 BUDGETED AMOUNT 2004/05 BUDGETED AMOUNT 2005/06 AdministrationR 28 676 000R 30 675 000R 32 526 000 Restructuring of State Owned Enterprises R 15 847 000R 17 307 000R 18 147 000 RestructuringR 10 475 000R 14 629 000R 15 468 000 Initial Public OfferingR 5 372 000R 2 678 000R2 679 000 Performance Monitoring and Strategic Analysis R 15 682 000R 16 200 000R 17 417 000 Performance Monitoring and Benchmarking R 12 102 000R 12 702 000R 13 392 000 Strategic AnalysisR 3 577 000R 3 498 000R 4 025 000 DEPARTMENTAL TOTALR 60 205 000R 64 182 000R 68 090 000

19. Department of Public Enterprises DATE - 11 June 2016 Page 19 Thank You