presentation to the parliamentary portfolio committee on communications 25 march 2010 cape town
DESCRIPTION
PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON COMMUNICATIONS 25 MARCH 2010 CAPE TOWN. OVERVIEW. 1.Sentech Team 2.Achievements: 2009 Corporate Plan 3.Strategic Plan and Budget: 2010 – 2013 Corporate Plan 4.Project Status: DTT and 2010 FIFA World Cup Soccer 5.HR Strategy - PowerPoint PPT PresentationTRANSCRIPT
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PRESENTATION TO THEPARLIAMENTARY PORTFOLIO COMMITTEE ON
COMMUNICATIONS
25 MARCH 2010CAPE TOWN
2
OVERVIEW
1. Sentech Team
2. Achievements: 2009 Corporate Plan
3. Strategic Plan and Budget: 2010 – 2013 Corporate Plan
4. Project Status: DTT and 2010 FIFA World Cup Soccer
5. HR Strategy
6. Participation in Uhurunet
7. Conclusion
3
SENTECH TEAM
• Dr. Sebiletso Mokone-Matabane: Chief Executive Officer• Ms. Beverly Ngwenya: Chief Operations Officer• Mr. Mohammed Siddique Cassim: Chief Financial Officer• Mr. Dingane Dube: Executive Legal & Regulatory• Adv. Matlakala Monyai: Company Secretary• Adv. Rachel Ramokhufi: General Manager Office of the CEO• Mr. Monde Ndeleni: Government Relations
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ACHIEVEMENTS 2009 CORPORATE PLAN
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ACHIEVEMENTS: 2009 CORPORATE PLAN
Achievements Future plans
For the year ended 31 March 2009, the Company reported “Profit from continuing operations” of R148 million.
For the year ended 31 March 2010, we anticipate the business at operational level to break even. For the 2010 – 2013 Corporate Plan period the BSD business will continue to be profitable.
All major network performance performed at the required customer service levels.
Continue to operate the networks at or above customer service level agreements.
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ACHIEVEMENTS: 2009 CORPORATE PLAN cont.
Achievements Future plans
To date rolled out 16 low power transmitter sites in Western Cape (incl. Greater Karoo), Kgalagadi area (Northern Cape), Limpopo and Free State. Total population coverage +/- 70 000.
Rollout at least 15 additional sites per FY. This is a total of at least 45 low power transmitter sites rolled over the 2010 – 2013 Corporate Plan period.
Sentech provides broadcasting signal distribution (BSD) to 47 community radio stations with estimated population coverage of +/- 12 million.
Continue to provide BSD to community radio stations.Sentech will continue discussions with DoC and MDDA to determine a model that will ensure financial sustainability of community radio stations.
Rolled out DTT infrastructure that is capable of providing just over 50% population coverage. (33% population coverage on air)
Based on the Final Frequency Spectrum Plan by ICASA, switch-on the DTT network to provide 56% population coverage by 31 March 2011.
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ACHIEVEMENTS: 2009 CORPORATE PLAN cont.
Achievements Future plans
Provided and operated the back-up satellite infrastructure at four stadia hosting the 2009 FIFA Confederations Cup as part of the Government telecommunications guarantee to FIFA. The local satellite feed (Government guarantee) performed at 100% availability.
Implement infrastructure at the balance of the stadia (6) hosting the 2010 FIFA WCS.Build the 2nd teleport which will also serve as back-up for Sentech’s STP teleport.Hand over infrastructure to FIFA on 1 June 2010.
Sentech provided VSAT connectivity to:
• Mpumalanga schools project (525)• Mobile Home Affairs Officers (87)• South African Post Office (SAPO) (74)
The number of VSAT connections planned:
•Mpumalanga schools project (1300)• Mobile Home Affairs Officers (200)•South African Post Office (SAPO) (172)•Free State Provincial Department of Education
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LOW POWER TRANSMITTER ROLLOUT
Below are sites rolled out and switched on to date:
In the Greater Karoo – Western Cape• Prince Albert • Leew Gamka • Nelspoort • Merweville • Klaarstroom
In the Kgalagadi area – Northern Cape• Heuningvlei • Severn • Loopeng • Laxey
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LOW POWER TRANSMITTER ROLLOUT cont.
In the North – Limpopo• Indemark • Mpzema/Phadzima • Mavhunga
In the Cape – Western Cape• Agter-Witzenberg – (To be completed end March 2010) • Genadendal
In the South - Free State• Villiers • Phillipolis
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COMMUNITY BROADCASTERS
Community Radio Stations by Province
8
5
810
5
2
9Eastern Cape
Free State
Gauteng
KwaZulu Natal
Mpumalanga
North West
Western Cape
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STRATEGIC PLAN AND BUDGET2010 – 2013 CORPORATE PLAN
12
MANDATE
• Electronic Communications Act (No. 36 of 2005)
“…to provide electronic communications services and electronic communications network services in accordance with the Electronic Communications Act.”
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MARKET SIZE AND GROWTH POTENTIAL
PRODUCTS/SERVICES
SENTECH MARKET SHARE
CONTRIBUTION TO REVENUE
GROWTH PROSPECTS
Television (TV) 92.6% 68%Market saturated.
DTT presents growth prospect
FM 98% 29%Market saturated
Low growth prospect
Medium Wave (MW) 86% 1%Market saturated
Low growth prospect
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MARKET SIZE AND GROWTH POTENTIAL cont.
PRODUCTS/SERVICES
SENTECH MARKET SHARE
CONTRIBUTION TO REVENUE
GROWTH PROSPECTS
Direct to Home (DTH)Vivid(Free To Air)
N/A 22% Moderate growth rate
Business Television and Radio (BTV)
10% 5.6% Moderate growth rate
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MARKET SIZE AND GROWTH POTENTIAL cont.
PRODUCTS/SERVICES
SENTECH MARKET SHARE
CONTRIBUTION TO REVENUE
GROWTH PROSPECTS
Short Wave (SW) 18.5% 20.4% Low growth rate
Facility Rental 22% 19.5% Moderate growth rate
* VSAT 7.6% 3.7%Moderate growth
rate
* Carrier of Carriers (CoC) 1.38% 10%Low growth
rate
* To be consolidated with the new telecommunications business plan currently under development.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS
Risks:• Public Service Broadcasting Bill
– SABC divided into public broadcasting, commercial and international. Sentech is declared common carrier for the SABC only in terms of public broadcasting services;
– declaring all Sentech’s broadcasting main sites as essential facilities;
– making Sentech tariffs transparent; and
– ICASA to regulate Sentech tariffs.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS cont.
Mitigation strategy (ies):
– Role clarity between SoEs in the same sector, in order to optimise State investment;
– Sentech will implement a facilities leasing strategy;
– Sentech has engaged an international consulting firm NGB to assist with formulating a tariff model in the DTT environment; and
– Customer Retention.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS cont.
Risks:• DTT Final Spectrum Plan:
– ICASA has adopted a Final Frequency Plan as opposed to the Sentech Complimentary Frequency Plan (SCFP); and
– This results in technical and financial implications for the project.
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IMPLICATIONS OF FINAL FREQUENCY SPECTRUM PLAN
• Some of the implications of the FSP are as follows:
– It is not possible to replicate the current analogue television coverage. The deployment of additional sites to address the coverage shortfall and differences between analogue and digital is not technically feasible and financially viable.
– Significant portion of the population would be deprived of the benefit of receiving DTT coverage by means of low-cost indoor-portable receive antennas.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS
Mitigation strategy (ies):
– Sentech has analysed the implications of the FSP and submitted a report to the Department of Communications for consideration and approval.
– Sentech will continue engaging ICASA on the implications of the FSP.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS cont.
Risks:• DTT Regulations and Digital Migration Reasons Document:
The Regulations will substantially erode Sentech’s revenue as:
– There is a provision for 2 network of frequencies (multiplexes); 1 multiplex is allocated for SABC services and the other multiplex for commercial broadcasters, etv and M-net.
– The Regulations have financial implications for Sentech.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS cont.
Risks:• Digital Migration Reasons Document:
– ICASA has resolved that encoding and multiplexing is not a licensable activity and it is not an activity that falls under electronic communications network service. Sentech role is now reduced to transmission excluding encoding and multiplexing.
– There are financial implications for Sentech.
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LEGISLATIVE AND REGULATORY DEVELOPMENTS WITH SIGNIFICANT IMPACT ON BUSINESS cont.
Mitigation strategy (ies):
• Sentech will commercially position itself to be appointed broadcasting signal distributor and multiplex operator for the future multiplexes post analogue switch off.
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BUSINESS STRATEGY1. Core Strategy: Broadcasting signal distribution
– Analogue television until Digital Switch Over.– Low Power transmitters expansion in partnership with SABC (15
per FY).– Digital Terrestrial Television (DTT)– 2010 FIFA Soccer World Cup (satellite back-up infrastructure)– Radio: FM, MW, SW– DTH– Business Television and Radio – Facility Rental– Other (consulting)– Investigate the provision of mobile TV infrastructure and value
added services to broadcasting signal distributors (e.g. subscriber management, interactive services, etc).
Funding to implement this strategy is in place: Cash flow from business operations; DTT and 2010 WCS funding allocations.
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BUSINESS STRATEGY cont.
2. Growth strategy options: geographic expansion / diversification into related industry
• Geographical expansion (Africa strategy):
– The strategy option is to acquire and/or build and/or operate and/or maintaining similar BSD networks beyond the SA borders.
Funding model will be dictated by the business plan.
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BUSINESS STRATEGY cont.• Diversification into telecommunications:
– Rollout a converged telecommunications network offering data, voice and video – including providing coverage to the 500 Dinaledi schools. Currently, Sentech has started the process of a new telecommunications business plan which has to be financially viable.
Funding to implement this strategy: R500 million funding allocated and the balance to be dictated by the business model.
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KEY PERFORMANCE AREAS/INDICATORS: 2010 - 2013
Table 1:
Key Performance Area Key Performance Indicators Performance Forecast
2010/11 2011/12 2012/13
Terrestrial analogue television Performance of network at SLA. 99.7% 99.7% 99.7%
Achieve revenue target: Retaining current customer base.
R373,853,000 R411,238,000 R452,598,000
Rollout and switch on of low power transmitters.
15 15 15
Digital Terrestrial Television (DTT)
Performance of network at SLA. 99.8% 99.8% 99.8%
Number of sites rolled out (cumulative based on ICASA frequency plan)
40 80 113
DTT Population coverage. 56% 80% 84%
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KEY PERFORMANCE AREAS/INDICATORS: 2010 – 2013 cont.
Table 2
Key Performance Area Key Performance Indicators Performance Forecast
2010/11 2011/12 2012/13
FM Performance of network at SLA. 99.8% 99.8% 99.8%
Achieve revenue target: Retaining current customer base.
R 160 624 000 R 176 897 000 R 194 586 000
Revenue growth: 3 new community radio broadcasters and 3 ad-hoc broadcasters per financial year.
R 191 000 R 210 000 R 231 000
Medium Wave (MW) Performance of network at SLA. 99.5% 99.5% 99.5%
Achieve revenue target: Retaining current customer base.
R 5 163 000 R 5 679 000 R 6 246 000
Short Wave (SW) Performance of network at SLA. 99.5% 99.5% 99.5%
Achieve revenue target: Retaining current customer base.
R 27 676 000 R 28 368 000 R 29 077 000
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KEY PERFORMANCE AREAS/INDICATORS: 2010 – 2013 cont.
Table 3
Key Performance Area Key Performance Indicators Performance Forecast
2010/11 2011/12 2012/13
Direct-to-Home (DTH)
Performance of network at SLA. 99.8% 99.8% 99.8%
Achieve revenue target: Retaining current customer base.
R 26 083 000 R 28 691 000 R 31 560 000
Revenue growth: 2 new TV channels and 2 new audio channels per financial year.
R 306 000 R 336 000 R 370 000
Business Television (BTV) and Radio (In-Store Radio)
Performance of network at SLA. 99.5% 99.5% 99.5%
Achieve revenue target: Retaining current customer base.
R 8 415 000 R 9 257 000 R 10 182 000
Revenue growth: R 40 000 R 44 000 R 48 000
Facility Rental Achieve revenue target: Retaining current customer base.
R 24 994 000 R 27 493 000 R 30 243 000
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KEY PERFORMANCE AREAS/INDICATORS: 2010 – 2013 cont.
Table 4
Key Performance Area Key Performance Indicators Performance Forecast
2010/11 2011/12 2012/13
Telecommunications business plan
Formulation, submission and approval of business plan and funding (As per recommendations in the Corporate Plan 2010/2013).
√
Rollout of NWBN √
VSAT Performance of network at SLA. 99.8% 99.8% 99.8%
Achieve revenue targets R29 284 000 R55 640 000 R105 715 000
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KEY PERFORMANCE AREAS/INDICATORS: 2010 – 2013 cont.
Table 5
Key Performance Area Key Performance Indicators Performance Forecast
2010/11 2011/12 2012/13
Financial Debtors collection (days) 30 days 30 days 30 days
Human Resources Achieve employment equity targets as per the Employment Equity Plans.
√ √ √
Achieve skills development targets as per the Skills Development Plans.
√ √ √
Broadbased Black Economic Empowerment (BBBEE)
BBBEE contributor status. Level 4 Level 3 Level 3
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PROJECT STATUS:DIGITAL TERRESTRIAL TELEVISION (DTT)
AND2010 FIFA WORLD CUP SOCCER
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DIGITAL TERRESTRIAL TELEVISION (DTT)
• Project status and plans:
– Sentech has to date procured and rolled-out transmitter infrastructure to cover just over 50% of the population. However, due to delays in the finalisation of the Frequency Spectrum Plan the DTT network has been switched on to provide only 33% population coverage.
– The objective of Phase 5, commencing 1 April 2010 is to install infrastructure for two multiplexes at five high power transmitter sites, five medium power transmitter sites; and two low power transmitter sites.
– Sentech will achieve 56% DTT population coverage by 31 March 2011 based on the current Budget allocation.
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2010 FIFA WORLD CUP SOCCER
• Project status and plans:
– Sentech is currently installing infrastructure at the balance of the stadia (6) hosting the WCS (four of the 10 stadia are ready as infrastructure was installed for the 2009 Confederations Cup).
– Building of the 2nd teleport is currently underway.
– Sentech will hand over the required infrastructure to FIFA on 1 June 2010.
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HUMAN RESOURCES STRATEGY
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HR STRATEGY• HR strategic objectives for 2010 – 2013:
– Organisational Alignment: Continuous alignment of HR practices to Company Strategy, Culture and People.
– Recruitment and Retention: Sourcing and retaining the right people, at the right levels, with the appropriate competencies to lead, implement and facilitate business change imperatives.
– Employment Equity
– Skills Development & training
The overall objective is to align skills retention with recruitment, skills development and employment equity.
Skills Development & training Internship programme Employee Bursary scheme Sentech Educational Fund National Youth Skills Development Programme
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STAFF COMPLEMENT AS AT 28 FEBRUARY 2010
Male Female Total
OCCUPATIONAL LEVELS African Coloured Indian White African Coloured Indian White
Top Management 1 0 2 1 3 0 0 0 7
Senior Management 16 1 3 14 9 0 0 1 44
Professionally Qualified & Experienced Specialist & Mid-Management 30 7 4 42 12 2 0 4 101
Skilled technical & Academical qualified workers, Junior Management, Supervisors, Foremen & Superintendants 92 12 14 70 65 4 5 14 276
Semi-skilled & discretionary decision making 37 4 0 3 19 5 2 7 77
Unskilled & defined Decision making 36 3 0 0 2 0 0 0 41
TOTAL 212 27 23 130 110 11 7 26 546
Total Permanent 212 27 23 130 110 11 7 26 546
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HEAD COUNT REPORT: WOMEN
Level African Coloured Indian White TOTAL
Top Management 3 0 0 0 3
Senior Management 9 0 0 1 10
Mid Management 12 2 0 4 18
Junior Management 65 4 5 14 88
Semi-skilled 19 5 2 7 33
Unskilled 2 0 0 0 2
TOTAL 110 11 7 26 154
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PARTICIPATION IN UHURUNET
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PARTICIPATION IN UHURUNET
• At the directive of the Department of Communications (DoC), Sentech withdrew its participation in EASSy to participate in Uhurunet.
• Sentech currently does not have equity participation in Uhurunet. • Sentech currently has a landing rights agreement with Uhurunet, in
terms of which:
– Sentech through its ECNS licence gives Uhurunet the right to land in South Africa;
– The right is not exclusive to Uhurunet. Sentech could give that right to any other interested party; and
– There are potential revenues for Sentech.
• Sentech has requested DoC for permission to participate in other undersea cables.
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2011 BUDGET ASSUMPTIONS1. Assumptions The budget covers the period 1 April 2010 to 31 March 2011 and the following indicators were used
to construct the 2011 budget numbers.
(a) Inflation
Revenue
Signal Distribution
Tariff increase for Terrestrial Services : 7% *
Tariff increase for Satellite Services : Based on the average forecast rand/dollar exchange rate of 9.28
Space Segment uplink costs : 7% *
Expenditure
Public Utilities
Telkom : 7%
Eskom : 30%
All other expenditure : 7%
(b) Foreign exchange rates
Dollar / Rand 9.28 (Nedbank forecasts)
Pound / Rand 14.70 (Nedbank forecasts)
Euro / Rand 13.4 (Nedbank forecasts)
(c) Prime overdraft rate
Average prime overdraft rate 13.00%
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INCOME STATEMENT
Actual Projected Budget Budget Forecast Forecast Forecast Forecast
2009 2010 2010 2011 2012 2013 2014 201520
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 765,535 776,958 915,487 878,364 1,194,811 1,444,143 1,620,750 1,641,967 -4% #
Less : Operating costs 852,704 742,884 1,010,702 887,210 964,331 1,059,905 1,144,526 1,238,617 12% #
Operating Profit -87,168 34,074 -95,214 -8,846 230,480 384,238 476,224 403,351 91% #
Less : Net Finance Income 57,676 56,259 42,862 34,883 -3,498 -10,120 -12,232 -13,455 -19% #
Interest Received 89,566 69,355 58,728 44,073 6,611 1,000 - - -25% #
Interest Paid -32,535 -12,857 -15,867 -9,190 -10,109 -11,120 -12,232 -13,455 42% #
Forex Losses 645 -238 - - - - - - 0% #
Profit / (loss) before taxation -29,493 90,333 -52,353 26,037 226,981 374,118 463,992 389,896 -50% #
Taxation 5,677 -53,612 - -73,000 -103,400 -107,762 -113,059 -119,279 100 #
Deferred Taxation: IFRS 24,689 -22,917 - -20,000 -17,000 -14,450 -12,283 -10,440 100% #
Company income tax -19,012 -30,695 - -53,000 -86,400 -93,312 -100,777 -108,839 100% #
Profit / (loss) after taxation -23,816 36,721 -52,353 -46,963 123,581 266,356 350,933 270,616 10% #
2010 vs 2011
* Increase in dual illumination revenue in line with increased footprint
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BALANCE SHEET
Actual Actual Budget Budget Forecast Forecast Forecast Forecast Variance
2009 Jan-10 2010 2011 2012 2013 2014 2015 2010 vs 2011
Assets R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Non-current assets 759,348 827,460 1,224,202 1,279,715 1,379,386 1,399,976 1,468,341 1,576,888 (55,512)
Property, Plant and Equipment 1 613,268 539,545 1,017,411 1,036,094 1,111,985 1,328,445 1,434,721 1,549,498 (18,682)
Capital Work in Progress 2 128,183 271,121 - 224,231 246,654 49,331 9,866 1,973 (224,231)
Intangibles 3 17,898 16,794 206,791 19,390 20,747 22,200 23,754 25,416 187,401
Current assets 1,133,796 1,205,720 305,614 591,042 125,297 280,473 471,630 667,986 (285,428)
Inventory 4 13,825 20,777 112,091 9,846 10,535 11,273 12,062 12,906 102,245
Trade Receivables 5 54,965 38,966 83,753 29,521 31,587 33,798 36,164 38,696 54,232
Sundry Receivables 9,080 10,229 - 9,436 10,097 10,804 11,560 12,369 (9,436)
Prepayments and Deposits 6 13,173 24,480 12,826 20,431 21,862 23,392 25,029 26,781 (7,605)
Cash and Cash Equivalents 7 1,042,753 1,111,268 96,944 521,808 51,216 201,206 386,814 577,234 (424,864)
Total assets 1,893,145 2,033,180 1,529,817 1,870,757 1,504,683 1,680,448 1,939,970 2,244,875 (340,940)
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BALANCE SHEET
Actual Actual Budget Budget Forecast Forecast Forecast Forecast Variance2009 Jan-10 2010 2011 2012 2013 2014 2015 2010 vs 2011
Equity and Liabilities R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Capital and reserves 447,665 500,877 539,754 394,078 648,868 948,931 1,236,267 1,546,198 145,677 Share Capital 2 2 2 2 2 2 2 2 - Share Premium 75,890 75,890 75,890 75,890 75,890 75,890 75,890 75,890 (0) New Capital - - - - 100,000 100,000 - - - Non Distributable Reserve 8 433,465 433,466 464,213 390,119 421,329 455,035 491,438 530,753 74,094 Retained Earnings (61,692) (8,482) (351) (71,934) 51,647 318,004 668,936 939,553 71,584
Non-current liabilities 1,061,674 1,182,716 571,157 1,240,467 573,377 433,025 383,384 354,926 (669,310) Long term Liabilities 9 82,082 74,513 106,590 195,340 223,340 188,340 126,040 76,040 (88,750) Government Grants 828,082 942,766 96,944 858,999 139,500 10,000 - - (762,055) Finance Lease Liability 8,018 1,094 - - - - - - - Licence Obligation 10 2,608 - 200,000 - - - - - 200,000 Retirement Benefit Obligations 11 119,940 131,940 107,469 131,128 138,537 148,235 158,611 169,714 (23,659) Deferred Taxation 20,944 32,403 60,154 55,000 72,000 86,450 98,733 109,173 5,154
Current liabilities 383,805 349,587 418,906 236,212 282,437 298,492 320,320 343,750 182,693 Trade Payables 12 102,045 71,789 86,345 69,118 73,957 79,133 84,673 90,600 17,227 Sundry Payables 106,235 106,926 101,039 110,094 117,801 126,047 134,870 144,311 (9,055) Provisions 13 4,000 18,359 57,676 4,000 4,280 - - - 53,676 Tax Liability 14 19,012 - - 53,000 86,400 93,312 100,777 108,839 (53,000) Bank overdraft - - 173,846 - - 173,846 Vat on Government grant 152,513 152,513 - - - - - - -
- - - - - Total liabilities 1,445,479 1,532,303 990,062 1,476,679 855,814 731,517 703,703 698,677 (486,617)
-
Total equity and liabilities 1,893,145 2,033,180 1,529,817 1,870,757 1,504,683 1,680,448 1,939,970 2,244,875 (340,940)
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RATIO ANALYSIS
Ratio analysisActual Actual Budget Budget Forecast Forecast Forecast Forecast
2009 30-Sep-09 2010 2011 2012 2013 2014 2015
Operating profit margin (%) (11.39%) 4.39% 4.39% (10.40%) (1.01%) 19.29% 26.61% 29.38%
Net profit margin (%) (3.85%) 11.63% 11.63% (5.72%) 2.96% 19.00% 25.91% 28.63%
Debt/Equity ratio (%) 237.16% 236.13% 105.82% 314.78% 88.37% 45.63% 31.01% 22.95%
Debt/Equity ratio (%) excl Govt Grant 52.18% 47.91% 87.86% 96.80% 66.87% 44.58% 31.01% 22.95%
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CASH FLOW
Actual YTD Budget Budget Budget Budget Budget Budget
2009 2010 2010 2011 2012 2013 2014 2015
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
CASH FLOW FROM OPERATING ACTIVITIES 197,455 186,689 65,393 46,465 420,322 587,163 696,089 642,106
Cash Generated from Operations 126,768 128,934 22,531 11,582 423,820 597,283 708,321 655,561
Interest received 103,221 68,586 58,728 44,073 6,611 1,000 - -
Finance Costs (32,534) (10,831) (15,867) (9,190) (10,109) (11,120) (12,232) (13,455)
CASH FLOW FROM IN INVESTING ACTIVITIES (191,313) (252,700) (681,890) (915,325) (1,174,914) (658,123) (448,181) (401,686)
Acquisition of Property, Plant and Equipment (117,933) (206,292) (59,567) (426,879) (864,557) (364,167) (347,126) (244,404)
Acquisition of Intangible Assets (572) - (200,000) - (1,357) (1,452) (1,554) (1,663)
(Decrease)/increase in Government Grants utilised (73,285) (46,408) (612,322) (488,446) (309,000) (292,504) (99,501) (155,620)
Reciept of Long term recievables 477 - - - - - - -
ICASA Licence Fees - - 190,000 - - - - -
CASH FLOW FROM FINANCING ACTIVITIES 322,989 134,525 (16,505) 279,400 284,000 220,950 (62,300) (50,000)
Government Grant Received 350,000 174,019 - 160,900 159,000 166,950 - -
New Equity - - 100,000 100,000 - -
Loans repaid - (7,570) (16,001) (21,500) (25,000) (46,000) (62,300) (50,000)
Interest Bearing liabilities (27,011) (31,924) (9,840) 140,000 50,000 - - -
Increase in Long Term portion of Trade and Other Payables - - 9,336 - - - - -
NET INCREASE/(DECREASE) IN CASH 329,131 68,514 (633,002) (589,460) (470,592) 149,990 185,608 190,420
Cash at beginning of the year 713,622 1,042,753 556,100 1,111,268 521,808 51,216 201,206 386,814
Cash at end of the year 1,042,753 1,111,268 (76,902) 521,808 51,216 201,206 386,814 577,234
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CONCLUSIONS
• BSD business is profitable.
– DTT growth opportunities: licensing dependent
• Regulatory & Policy Risks. • Strengthen capital structure of the business.
• Telecommunication business plan.
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THANK YOU