1. State Information Technology Agency
Annual Financial Results Presentation for the year to 31 March 2007

2. Agenda Business Review Financial Review Question & Answer session
Peter Pedlar, Chief Executive Officer (Acting)
Financial Review
Mfanyana Salanje, Chief Financial Officer
Question & Answer session

3. Peter Pedlar Chief Executive Officer (Acting)
Business Review

4. Introduction First full year new operating model in effect
Customer satisfaction index up 20 points to 63% level
Employee satisfaction levels improve by 10.17%
Inaugural GovTech conference creates ICT thought leadership platform

5. Financial performance
Revenue growth of 15.6% - R3 357bn
Gross profit up 33.9% - R712m
Surplus improved by 76.4% - R143.5m

6. Business highlights Procurement services
65 contracts worth R1 527bn awarded
86% of contracts awarded to BEE vendors
Strategic partnership and funding model
Customer satisfaction index

7. Strategic projects e-Government IFMS Municipal ICT blueprint
ID Track & Trace SMS System (Home Affairs)
Interactive Voice Response System
IFMS
Integrated Development Environment Tender
Procurement Module Tender
Municipal ICT blueprint
Three proof-of-concept projects underway

8. Human capital Turnover of 9.11% below industry average of 12%
96% of staff trained as per requirements
Youth Internship Programme
ICT graduate training programme
Trained 358 youth at R29 830m investment

9. Directors’ report
PFMA issues
Going concern
Changes in directorship

10. Conclusion GovTech commitments e-Government implementation
FOSS implementation
Municipal ICT blueprint
IFMS project

11. Mfanyana Salanje Chief Financial Officer
Financial Review

12. Statement of financial position - Cash and cash equivalents
15% increase in cash on hand.
25% decrease in ring-fenced cash.
1% increase on total cash and cash equivalents. Rm

13. Cash flow statement (in Rand million) 2007 2006
Cash flows from operating activities
165.5
506.8
Cash flows from investing activities
(148.7)
(81.4)
Cash flows from financing activities
(5.2)
Movement in cash and cash equivalents
11.6
420.2
Opening balance - cash and cash equivalents
664.9
Closing balance - cash and cash equivalents
1085.1

14. Statement of financial position - Trade and other receivablesRm
Perspective
Target
Stretch target
Actual performance
Debtors’ days
<55 days
50 days
58 days

15. Statement of financial position - Current assets
Ageing of trade receivables
Trade receivables - R718.8m

16. Statement of financial performance - Capital expenditure

17. Statement of financial position - Capital expenditure breakdownRm

18. Statement of financial position - Current liabilities
Trade and other payables
(in Rand million)
2007
2006
Trade payables
566.2
511.3
Other payables
131.2
70.3
Total
697.4
581.6
Perspective
Target
Stretch target
Actual performance
Liquidity ratio
1.5:1
2.0:1
1.6:1

19. Statement of financial performance - Revenue
Perspective
Target
Stretch target
Actual performance
Revenue growth
10.6%
12.0%
15.6%

20. Statement of financial performance - Gross profit
Perspective
Target
Stretch target
Actual performance
Gross profit margin
20.0%
22.5%
21.0%

21. Statement of financial performance - Operating expenses

22. Statement of financial performance - Net surplus for the year
Perspective
Target
Stretch target
Actual performance
Net profit margin 3% 5% 4%

23. Creation of wealth

24. Distribution of wealth - 2007

25. Question & Answer session

26. Thank you for attending