1. BUSINES PERFORMANCE REPORT
2016/2017 THIRD QUARTER
BUSINES PERFORMANCE REPORT
TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES
DATE OF PRESENTATION: 15 AUGUST 2017

2. INTRODUCTION Overview of performance against corporate KPIs
Financial Performance
Product and Network Performance
Governance
Internal Audit
Employment Equity Plan
Enterprise Development
Conclusion

3. Performance Against Corporate KPIs

4. Performance against Corporate KPIs Achieved/Not Achieved
* In Quarter 3, 4 out of 7 (57%) targets were achieved as set out in the table below:
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q3 Target
Actual Performance
Achieved/Not Achieved
Variance Explanation
SG 2: Ensure high levels of customer and stakeholder satisfaction by meeting their needs at all times.
Ensure network availability meets SLA requirements across all platforms
Weighted average availability based on product revenues
Weighted average availability based on product revenues of 99,80%
Weighted average availability based on product revenues of 99,80%
Achieved Weighted average availability based on product revenues of 99,84
Achieved
This target has been over- achieved due to better management of SENTECH’s national network.
Improve customer and stakeholder satisfaction
Customer service index
Baseline +5%
Completion of survey for 2016/17
Survey has started but not completed
Not achieved
Delays were mainly due to addressing recommendation s from previous survey.

5. Performance against corporate KPIs Achieved/Not Achieved
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q3 Target
Actual Performance
Achieved/Not Achieved
Variance Explanation
SG 3: Drive organisational performance in to improve organisational effectiveness.
Effective talent management
Performance ratings achieved
Average employee performance score of 3,2 for the 2016/17 financial year
Performance reviews completed for all employees for quarter 3
Not all reviews fully completed
Not achieved
The festive season break affected finalisation of the reviews. Dates have been shifted to allow for sufficient time.
% Training Plan implemented
80% of the 2016/17 approved training plan interventions implemented
60% of the 2016/17 approved training plan interventions implemented
65.0% of the approved training plan implemented
Achieved
This target has been over- achieved by a marginal amount due to the completion of additional training interventions than what was required during the quarter.

6. Performance against Corporate KPIs Achieved/Not Achieved
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q3 Target
Actual Performance
Achieved/Not Achieved
Variance Explanation
SG 4: Ensure that the Company is financially sustainable.
Revenue diversification into international markets
Develop and implement Pan-African Strategy
Pan-African Business Case completed
Complete draft- Pan African business case
Work has started albeit late
Not achieved
There have been delays in procuring a service provider to conduct the research to inform the business case.
Implement ESD and SED initiatives
% actual NPAT spent for the 2016/17 financial year
6% of actual NPAT spent for the 2016/17 financial year
Achieve 70% of budgeted ESD and SED spend
Above budget achieved
Achieved
This target has been over-achieved due to an additional number of ESD and SED activities during Q3.
Maintain a healthy earnings before Interest and tax (EBIT)
Earnings before interest and tax
R5.22 million
R 3.40 million year to date
EBIT of R37.7million achieved
This target has been over-achieved due to dual illumination funds received as well as savings against budget for the following categories of expenditure: operating, selling and administrative.

7. Financial Performance

8. Financial Performance
Q3 December 2016

9. Financial Performance
Revenue Per Service

10. Product and Network Performance

11. Product and Network Performance
National Network Performance - Q3 2016
Network Services
SLA Target (%)
SENTECH Performance (%)
Actual
R'000
Budget
R’000
Weighted
Ave (%)
Terrestrial Television
99.7
99.84 R R
55.23
FM Radio
99.76
R69 915
R76 722
26.39
Medium Wave Radio
99.5
99.94
R2 337
R2 833
0.88
Short Wave Radio
99.97
R6 290
R8 186
2.38
Satellite
99.8 R
R48 770
14.96
Total
Overall Network availability R R

12. Product and Network Performance…

13. Governance

14. Governance Board and Board Committee Meetings
Scheduled Board and Board Committee meetings have been held in line with legislative and governance requirements.
Special meetings were held by the Human Resources, Nominations and Remuneration Committee, and Social and Ethics Committee for consideration of reviewed policies.
PFMA Compliance matters
The Second Quarter Business Performance Report was submitted to DTPS on 31 October 2016.
The 2015/16 Integrated Annual Report was presented to Parliament on 18 October 2016.

15. Governance Changes in Directorships
Mr Obrey Nekhavhambe’s term as the acting CFO has ended on 30 November 2016 following the appointment of the CFO, Mr Siphamandla Mthethwa, for a five-year term with effect from 1 December 2016.
Ms Lungile Ndlovu has been appointed as a Non-Executive Director for a three-year term with effect from 11 December 2016.
Ms Jacqueline Huntley and Ms Zodwa Mbele have been reappointed as Non-Executive Directors for a three-year term each with effect from 11 December 2016.
Ms Xoliswa Daku term has retired as a Non-Executive Director with effect from 12 December 2016.

16. Internal Audit

17. Internal Audit
The table below summarizes the Internal Audit Function’s progress against the 2016/17 Revised IA Plan relevant to Quarter 3. The IAF has completed all audits set out in the 2016/17 Internal Audit Plan together with approved ad-hoc assignments.
Name of Internal Audit Project
Fieldwork Completed
Audit Report Issued
Audit Project Status
HR Full Scope Audit n
Risk Assurance Procedures
Broadcast Operations Follow Up Audit
Predetermined Objectives Review Q2
Name of Internal Audit Project
Ad-Hoc Project Requested By
Fieldwork Completed
Audit Report Issued
SCM Tender Review n

18. Risk Management

19. Risk Management Progress on Mitigation of top Risks
There has been only one movement in the risk levels between quarter 2 and 3.
The DTT risk that relates to the alignment of the DTT to SKA plans has been reduced due to a successful migration in the SKA area.
All the other risk levels stayed the same due to quarter 3 being a corporate planning period and more resources are focused on the planning.

20. Employment Equity Plan

21. Employment Equity Plan
The Employment Equity Plan has been finalised to enable the attraction of African talent and black women. At top management levels 100% are black, 87% at senior management and 73% at specialists and middle management levels are black; and 82% for skilled and technical levels.
HR Dashboard
Number of Employees
552
Employee Turnover
0.9%
Black Representation In Top Management
100%
Black Women Representation In Top Management
25%
Black Women Representation In Senior Management
20%
Black Women Representation In Specialist And Middle Management
30%
Black Women Representation In Technical Levels
38%
Representation of Disabled Candidates
0.7%
Total Training Spend R
Occupational Health And Safety(TRIR)
0.0462%,

22. Enterprise Development

23. Enterprise Development
The Enterprise and Supplier Development Programme operates on three pillars namely; grant funding, early payment and incubation programme.
SENTECH remains committed to job creation.
Sixty nine (69) jobs were created as a result of the Company’s ESD programme for ICT SMMEs.

24. Conclusion

25. Conclusion
Performance against Corporate Plan KPIs was above average with more than 50% of Q3 targets achieved.
The company showed exceptional EBIT performance of 414% against the set target.
Continuing business revenue (dual illumination grant excluded) missed the target whilst the total revenue was on target.
Expenditure was lower than what was budgeted due to reduced maintenance & employee costs in respect of official vacancies provided for but not yet filled, legal and consulting fees, reduced satellite rental due to favourable forex rates
Network performance exceeded SLA targets despite slight percentage drop in Medium Wave performance.
The Broadcasting Signal Distribution product portfolio remains the primary driver of revenue contributing more than 80%.

26. Conclusions… Governance remains effective and stable.
Internal Audit continue to perform its duties well.
Risks including strategic and new risks are continuously being monitored and effective risk management plans implemented.
Employment equity plan has been finalised to enable the attraction of African talent and black women.
SENTECH remains committed to job creation and enterprise development.

27. Thank You!