Sentech Presentation to the Portfolio Committee on

Communications8 November 2005

Sentech Team

Dr Sebiletso Mokone-Matabane Chief Executive Officer

Dingane DubeExecutive, Government & Regulatory Affairs

Marc D’Oliveira Manager, Office of CFO

Johan Raath Executive, Office of COO

Agenda

• Commitments made in 2004• Multimedia Business

– MyWireless– BizNet– VSat

• Broadcast Network– Digital Terrestrial Television– Regional TV

• CSI• Financials• Year Ahead

Commitments made in 2004

• Grow the Multimedia business• Prepare the company for digitisation• Enhance broadcasting• Continue as the State’s delivery

partner– Education, Health and e-Government– Development of the Second Economy

Multimedia Business

MyWireless

• Focus on customers and service delivery– My ADSL best Wireless Broadband

service in SA– Stable network

• Launched in Nelspruit• Launched MyWireless Flexi

– Bandwidth-capped

• Launched bundled services

BizNet

• Service launched – 1 November 2005• Fixed Wireless service• Provides guaranteed throughput

service to Government and business– 64kb/s to 2Mb/s– Ideal for the replacement/supplementing

of leased lines

• Vital element of delivery to State– Sita contract

Vsat

• VStar still the service of choice– MPCC’s– Schools– State– Business

• Launched Vmesh– Interconnection of offices and head

offices without need to transmit through a central hub

Broadcasting

Digitisation

• MTEF funding announced• Sentech commences digitisation of

television network(DTT) from 2006• Fast-track of network digitisation

planned - 2010• e-Services on DTT• Sentech as the multiplex operator

– The State’s broadcasting assets at the hub

Regional TV

• Possible to provide either analogue or digital network– Analogue will increase the burden for

digitisation program

• Full coverage of planned TV 4 and 5 areas very difficult if not impossible with analogue– Frequency spectrum issues

• National Coverage for regional stations possible

Corporate Social Investment

Corporate Social Investment

• BBQ Corporate Social Investment Award– Delivering services to communities and

our people– Using the power of communications to

uplift

Infrastructure

Infrastructure Projects

• EASSy• SKA • National Broadband Network

– Wireless Access– National Fibre Capacity

Financials

Cash Flows for the 2005 Financial Year

• Cash utilised in operation R 118 Mil– Cash generated by operations R148 Mil– Net finance costs (R 32) Mil

• Cash utilised in investing activities (R 19) Mil– Assets acquired (R 35) Mil– Disposal of Assets R 27 Mil

• Cash generated from financing activities R 2 Mil– Interest bearing borrowings R 2 Mil

• Net cash movement R 101 Mil

Financial highlights

Financial results R Mil

-200

-

200

400

600

800

1999 2001 2002 2003 2004 2005

Revenue Gross profit Operating profit Profit after taxation

The Year Ahead

• Begin fast-track Digitisation of TV network

• e-Government• Second economy• Social investment• Expand national broadband business• EASSy implementation• PSRCS

Thank you