1. Annual Financial Results For The Year Ended 31 March 2011
SA Post Office Group
Annual Financial Results For The Year Ended 31 March 2011
Presentation to the Parliamentary Portfolio Committee on Communications

2. Group Performance Overview
Annual Results
Group Performance Overview

3. Focus 2010 - 2011 Corporate Governance and Compliance
King III and Companies Act
Financial Services Regulatory Bodies
Postbank Corporatisation
Long Term Sustainability Platform for the Last Mile
Financial Oversight within Economic Crisis
Human Resource Capacity
Service Improvement Drive
Environmental Programmes

4. Vision
To be recognized among the leading providers of postal and related services in the world

5. Mission
To enable the nation to efficiently connect with the world by distributing information, goods, financial and government services; leveraging our broad reach and embracing change, technology and innovation

6. Postal Environment - Global Trends
Maximising the efficiency and effectiveness of existing processes, systems and networks performance
The introduction of new products and services designed to respond to the needs of a demanding market
Entering new lines of business through investment in new capabilities, partnerships and acquisitions
Expanding and capturing business opportunities beyond local borders

7. Local Trends
Third consecutive decline in mail volumes, this year by 3.6%
Increased Focus in governance and corporate citizenship
Sustainable development and Environmental impact
Commercialisation and regulation of financial services
Social transformation and embracing Universal Service Obligations
Robust Financial Management in a economically challenged environment.

8. Strategic Themes Grow top line revenue at an acceptable cost
Deliver on our shareholder mandate and establish excellent stakeholder relationships
Improve efficiency and effectiveness in the way we conduct our business
Satisfy our customers by being consistent and innovative
Entrench a high performance culture in the organisation
Contribute positively to our communities and environment by embracing responsible business and social practice.

9. Financial Highlights 0.4% to R5,953 billion 5.7% to R9,95 billion
Revenue Increase
0.4% to R5,953 billion
Total Assets
5.7% to R9,95 billion
Postbank Deposits
9.1% to R3,98 billion
Cash and Investments
6.4% to R7,08 billion
Cash Flow from Operating Activities
46.9% to R157 million

10. Government Mandate To provide physical addresses to every household
1.7 million against a target of 1.6 million
To make the postal and financial service available to all South Africans at an affordable price
77.7 million customers, a 5.7% increase
Depositors’ book up 9.1%
Quality Service 94.1% vs. 95% target
Tariff Increase below CPI
Provide a countrywide service
54 New and Renovated outlets vs. 134 last year
Enabling economic opportunity

11. Key progress per Business Model
Mail Business
E-fulfilment positioning completed and positive revenue growth opportunities
Logistics
Phase 1: Integration of SSC and CFG still in progress
Financial Services
Corporatisation of Postbank on track
Properties
Unlocking Value in the Property Portfolio
Property valuation remains unchanged at R1bn
ICT
Leveraging investment in IT Infrastructure
Trust Centre Lock down and Accreditation

12. Customers and Performance
Satisfy our Customers by being consistent and innovative
E-fulfillment services
Extension of services in SADC – Logistics Business
ISO Accreditation Programme
Entrench a High Performance Culture
Skills Development and Training
Recognition of Prior Learning Programme
Review of the Staffing and Remuneration Models
Achievement of Equity targets
79% participation in Wellness program vs 55% last year

13. Environmental Plans Carbon Emissions - Criteria and targets set
30.34Kt CO2e against last year’s 31.42Kt CO2 e carbon emissions achieved i.e. a 3.4% reduction in fleet emissions
Carbon off-set at 3.4% emissions, exceeding target by 0.9%
1 107 trees planted against a target of 857.
Paper recycling Programme
649 tons of waste paper recycled against 137 tons recycled last year.
tones of paper used vs used last year, a 37% reduction in paper usage
Piloting energy saving programs to measure reduction of energy usage at Tshwane Mail, Sunnyside, NPC and SCM
Participating in the Carbon Disclosure Project

14. Performance Highlights
Group Profit Before Tax down by 37,8% to R235,3 million
Group Operating Revenue stable at R6.0 billion
Capital Expenditure down by 30% to R379 million
SA Heritage Resources Agency Award
SETA award for Best Internal Provision of Training
African Access National Business Award for diversity in the workplace

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Group Financial Overview
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Performance Summary
Seventh consecutive year of profitability
Total assets increased by 5.68%
Revenue increased by 1.71%
Expenses increased by 3.87%
Net profit decreased by 47.63%
Profit margin declined to 4.35%
Postbank depositor’s funds increased by 9.1%
Strong cost controls minimised impact of trading conditions
The Group remains debt free
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17. Post Office Group financial overview
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18. Post Office excluding subsidiaries
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19. Courier & Freight Group
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Docex
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Balance Sheet Summary
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Economic indicators
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Fuel price history
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Group revenue
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Interest income
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Group revenue
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Group staff costs
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Group transport costs
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Group property costs
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Group balance sheet
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Group cash flow
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32. Group financial ratios
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33. Group net asset value trend (R’000)
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34. Group profit before tax trend (R’000)
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35. Group trading profit trend (R’000)
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36. Group total assets trend (R’000)
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37. Group depositor’s fund trend (R’000)
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Group capex – R204 million
Property R104m
IT infrastructure R72m
Other capex R28m
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Group capex (R’000)
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40. Subsidy utilisation – 2010/11
USO post offices R250m
Vat R38m
Roll over R190m
26 New post offices
1,715,935
New addresses
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41. Declining Subsidy (R’000)
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Summary
Profit of R153 million achieved through tough trading conditions
Tight working capital management ensures continued balance sheet strength
Lower profitability due to decreased mail volumes and lower interest rates
Strong cost control minimises depressed revenue impact.
Reduction in capital investment due to current economic climate
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Thank You!
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