SAPO Turnaround Progress Key Achievements

1
SAPO TurnaroundProgressKey Achievements
2
Reduction in Operating losses over the past years
KEY ACHIEVEMENTS
March 2001
577.4 Million Loss
March 2002
352.0 Million Loss
March 2003
154.6 Million Loss
March 2004
1.8 Million Profit
Meeting shareholder expectation re Financial
Mandate
3
FINANCIAL HIGHLIGHTS 2002/2003
KEY ACHIEVEMENTS

• Revenue growth 6.8
• Staff overhead reduction 2.2
• Reduction of Post Bank loan R231m
• Operational Cash generated R118m
• Post Bank deposits growth R189m
• Improved control environment leading to
  unqualified audit report.
• Submission of 2002/2003 Annual Financial
  Statements within the regulated time frame.

Meeting shareholder expectation re Financial
Mandate
4
KEY ACHIEVEMENTS
VALUE DESTROYING CONTRACTS CANCELLED
CONTRACT VALUE SAVINGS
Airworld R96 million R30 million
SF Group R43 million R41 million
DMC management R 7 million R5 million
Mystery Shopper R9.2 million R9.2 million
Twilight R12 million R12 million
Engen Fuel R25 million R3 million
Transman R8 million R1 million
Q-Data R7 million R2.5 million
Meeting shareholder expectation re Financial
Mandate
5
Improving Control Environment
6
Service delivery improvements from 84.46 to
90.83
KEY ACHIEVEMENTS
Meeting shareholder expectation re Service
Delivery Policy
7
PostBank Growth in deposit base
KEY ACHIEVEMENTS
Meeting shareholder expectation re Banking the
un-banked
8
KEY ACHIEVEMENTS
TOTAL TRAINING 2002 -2003
AM IM CM WM AF IF CF WF Management 89 1
2 7 57 41 1 0 18 Total 225 Professionals 651 1
22 314 477 300 14 61 365 Total
2304 Clerks 1151 160 226 496 1485 111 232 1702
Total 5563 Elementary 2275 154 1183 244 984 17
303 415 Total 5575 Total 4166 448 1730 1274 28
10 143 596 2500 Total 13667
Meeting shareholder expectation re Human
Resource Development
9
Employment Equity and BEE
KEY ACHIEVEMENTS

• Equalisation of apartheid salaries
• Top Management in South African Post Office is
  predominantly black and has 4 females at
  executive committee level
• Black Economic Empowerment equals 35.03 of
  total spending from 6.

10
KEY ACHIEVEMENTS

• Reviving and enhancing
• SAPO status as Trusted
• Third party through the
• Electronic Communication
• Transactions Act.