1. AGM presentation 17 Sep 20141

2. Audit Opinion Auditor-General issued an Unqualified Audit Report  Financial Statements are not materially misstated  Opinion is not given on Performance Information  Material adjustments to commitments were processed in the current year AGM presentation 17 Sep 2014 2

3. Employers info – March 2014 18,401 (2013: 18,355) registered employers 4,147(2013: 5,068) employers paying SDL levy - Total levies received R269,9M (2013: R223,1M) Applications received by 30 June 2013 (for 2014): WSP’s =1,759(2013: 1,835 ) Total amount paid towards Mandatory Grants – R54.9M (2013: R99.9M) Payout is 72% AGM presentation 17 Sep 20143

4. Levy Growth AGM presentation 17 Sep 20144

5. Levies Analysis YearAmount R’000Percentage Growth % 2010 161 524 13.26% 2011 172 372 6.71% 2012 206 026 19.52% 2013 223 180 8.32% 2014 269 932 20.95% AGM presentation 17 Sep 20145

6. Project Grant Expenditure March 2014 Total project spend: R144.2M (2013: R104.0M) 38.7% increase Top 10 projects on spending 71% of total Project Expenditure 6 Name R-Millions P4 Learnerships 18.2R16.5M P4 InternsR13.6M FET InfrastructureR24.8M P7 Learnerships 18.1R13.2M P7 Commodity OrgsR7.5M P4 Apprenticeship and ABETR4.5m 4.1 Mentoring and support for Land ReformR7.2M P4&P7 Skills Delivery AdministrationR5.4M P7 Skills Programmes 18.1R4.6M P4 Graduate PlacementsR5.7M

7. Statement of Financial Performance March 2014 INCOME2013/14 R’000 2012/13 R’000 % Movement Levies, penalties & interest 273,565225,54221.29% NSF & special projects income 24,70215,47459.64% Investment and other income 9,347 8,48010.22% Total307,614249,49623.29% AGM presentation 17 Sep 20147

8. Statement of Financial Performance March 2014 EXPENSES2013/14 R’000 2012/13 R’000 % Move Employer grant Discretionary >Paid Movement in Accrual FET Infrastructure 54,936 109,577 9,856 24,844 99,892 101,417 2,598 0 (45.00%) 8.05% 279.37% 100% Admin expenses and finance costs 31,53428,03412.48% NSF & Special project expenses24,70215,47459.64% Total255,449247,4153.25% Net Surplus/(Deficit):52,1652,0812406.73% 8

9. Statement of Financial Position March 2014 ASSETS2013/14 R’000 2012/13 R’000 % Move Property Plant & Equipment4,5024,627(2.7%) Intangible assets Receivables 5 17,710 16 10,780 (68.75%) 64.29% Cash and Bank213,847173,43723.30% Total236,064188,86024.99% AGM presentation 17 Sep 20149

10. Statement of Financial Position March 2014 EQUITY & LIABILITIES2013/14 R’000 2012/13 R’000 % Move Grant and Other Reserves 168,584116,41944,81% Capitalisation reserve3,107 0% Payable & Provisions61,64167,572(8.78%) Grants & Donor Funding 2,733 1,76255.11% Total236,065188,86024.99% AGM presentation 17 Sep 2014

11. Discretionary Reserve AGM presentation 17 Sep 2014 YearDiscretionary Reserve Approved By Board Contracted 2013/14R167,44MR145,28MR133,26M 2012/13R115,15MR108,18M R77,20M % Movement 45.41%34.29%72.62% Allocation of Discretionary Reserves

12. Cash Flow Statement –Summary March 2014 12 Cash Flow Statement2013/14 R’000 2012/13 R’000 Net Cash Outflow from operating Activities 40,848(2,063)2080.08% Cash Outflow from Investing Activities (312)(169)(84.62%) Net Decrease in Cash and Cash Equivalents 40,410(2,301)(1856,19%) Opening Cash Balance173,437175,738(0.13%) Total213,847173,43723.30%

13. Conclusion 13 Questions?

14. Conclusion Thank You 14