QUARTERLY FINANCIAL PERFORMANCE PRESENTATION 4 th Quarter ending

QUARTERLY FINANCIAL PERFORMANCE PRESENTATION (4 th Quarter ending 31 MARCH 2013) Presented by: Ms Yvonne Chetty Chief Financial Officer 1

PRESENTATION LAYOUT • 4 th Quarter Financial Performance for 2012/13 - Overview per Economic Classification • 4 th Quarter - Top 5 Major Cost Drivers (Goods & Services) For 2012/13 • 4 th Quarter Financial Performance for 2012/13 – Overview Per Programme • 4 th Quarter Transfer Payment Schedule for 2012/13 2

4 th QUARTER FINANCIAL PERFORMANCE FOR 2012/13 Overview – Economic Classifications VOTE 29: ENERGY TOTAL ENERGY Compensation of Employees Goods & Services Payments for Financial Assets Transfers & Subsidies Payments for Capital Assets 2012/13 ADJUSTED BUDGET R'000 2012/13 ACTUAL R'000 6, 734, 4 78 206, 7 63 207, 747 2012/13 Percentage BUDGET VARIANCE EXPENDED R'000 % % 6, 658, 9 75, 84 494 1. 1% 201, 5, 485 278 2. 6% 170, 37, 53 208 9 18. 1% 36 6, 304, 8 41 6, 276, 700 15, 127 2012/13 10, 555 98. 9% 97. 4% 81. 9% -36 - - 141 28, 0. 4% 99. 6% 4, 572 30. 2% 69. 8% 3

4 th QUARTER FINANCIAL PERFORMANCE FOR 2012/13 • The Department’s 2012/13 adjusted budget was a total of R 6. 73 billion • As at 31 March 2013, a total of R 6. 66 billion or 98. 9% of this adjusted budget had been disbursed • This resulted in an unspent total/remaining balance of R 75. 49 million or 1. 1% of the adjusted allocation • The overall under spend, R 75. 49 million, was mainly due to the spending within the Goods & services economic classification, which accounted for R 37. 5 million of the remaining balance, while the Transfer Payments economic classification contributed R 28. 1 million to the remaining balance • A roll over motivation will be submitted to the NT for consideration 4

4 th QUARTER (TOP 5) - MAJOR COST DRIVERS: GOODS AND SERVICES FOR 2012/13 Percentage of Actual Total Goods & Expenditure Item Expenses Services Spent % R’ 000 Travel and Subsistence 37, 009 Lease Payments Operating Payments 28, 575 23, 989 Property Payments 23, 664 Cons/Prof: Business & Advisory Service 15, 358 TOTAL 128, 623 TOTAL 12/13 GOODS & SERVICES ACTUAL: R 170, 208 28. 8% 22. 2% 18. 7% 18. 4% 11. 9% 75. 55% Travel & Subsistence: 56% of the total expenditure was incurred in the Administration programme • Lease Payments: This is inclusive of operating leases for printing machines and office accommodation for both regional and head offices. Office accommodation leases accounts for 89% of the total spend • Operating payments: Mainly for international membership fees, the total is inclusive of payments from the 2011/12 Financial year which was funded by the approved roll over. • Property Payments: Include and amount of approx. R 20 m for the Bill of 5 •

4 th QUARTER FINANCIAL PERFORMANCE FOR 2012/13 - per PROGRAMME VOTE 29: ENERGY TOTAL ENERGY Administration Energy Policy & Planning Energy Regulation National Electrification Programme Nuclear Energy & Regulation 2012/13 ADJUSTED BUDGET 2012/13 R'000 ACTUAL 2012/13 Percentage BUDGET VARIANCE EXPENDED R'000 % % 6, 734, 4 6, 658, 78 984 5, 494 236, 58 3 219, 486 097 7 1. 1% 17, 7. 2% 1, 563, 403 1, 544, 913 18, 490 1, 139, 78 1, 139, 47 7 6 311 1. 2% 98. 8% 0. 1% 35, 4 46 1. 1% 4, 1 50 0. 6% 99. 9% 3, 147, 822 3, 112, 376 646, 8 642, 7 83 33 98. 9% 92. 8% 98. 9% 99. 4% 6

Programme 1: Administration VOTE 29: ENERGY 2012/13 ADJUSTED BUDGET 2012/13 R'000 ACTUAL 236, 5 83 Compensation of employees Goods and services Payment for Financial Assets Transfers and subsidies Payments for capital Assets 99, 289 046 2012/13 Percentage BUDGET VARIANCE EXPENDED R'000 % 219, 4 86 097 92, 876 122, 115, 84 8 - 35 400 79 14, 8 48 2012/13 13 198 -35 1 221 10, 5 48 300 17, 7. 2% 6, 4 6. 5% 6, 5. 1% % 92. 8% 93. 5% 94. 9% 0. 0% 55. 2% 4, 29. 0% 44. 8% 71. 0% • Compensation of employees: Variance due to additional funding from the EEDSM reclassification to clear the estimated shortfall as a result of staff additional to the establishment and salary adjustments for senior management, for the entire Do. E. • Goods and services: The remaining balance is mainly due to office accommodation leases, a total of R 25. 6 m was paid from a budget allocation of R 32. 2 m resulting in a balance of R 6. 6 million Capex: Balance due to funds shifted in order to provide for projects in Auxiliary services, e. g. PA, system, Atrium 7 closing and equipment purchases in IT. The projects could not be

Programme 2: Energy Policy and Planning VOTE 29: ENERGY Compensation of employees Goods and services Payment for Financial Assets Transfers and subsidies Payments for capital Assets 2012/13 ADJUSTED BUDGET 2012/13 R'000 2012/13 Percentage BUDGET VARIANCE EXPENDED ACTUAL R'000 % 1, 563, 40 1, 544, 91 3 3 490 32, 47 32, 9 0 01 -431 30, 7 11, 9 01 73 728 18, 1. 2% % 98. 8% -1. 3% 18, 61. 0% 101. 3% 39. 0% 1, 500, 00 0 1 1, 500, 0 31 -1 0. 0% -31 0. 0% 100. 0% 232 7 225 97. 0% 3. 0% • Goods & services: Variance mainly due to a number of projects which were not finalized as planned, e. g. the mini ADAM project , the audit of refineries as well as the clean energy campaigns within one of the PPP events which were postponed to the next financial year 8

Programme 3: Energy Regulation VOTE 29: ENERGY 2012/13 ADJUSTED BUDGET 2012/13 R'000 1, 139, 787 Compensation of employees Goods and services Transfers and subsidies Payments for capital Assets 84 54 1, 076, 739 10 2012/13 Percentage BUDGET VARIANCE EXPENDED ACTUAL R'000 % 1, 139, 47 6 311 49, 9 51, 31 4 -1 , 330 13, 0 11, 37 4 680 1, 076, 78 8 -49 - 0. 1% % 99. 9% -2. 7% 102. 7% 1, 12. 9% 87. 1% 0. 00% 10 100. 00% • Goods & services: The payment to IPEEC for international membership fees could not be processed before year end as anticipated. 9

Programme 4: National Electrification Programme VOTE 29: ENERGY Compensation of employees Goods and services Transfers and subsidies 2012/13 ADJUSTED BUDGET 2012/13 R'000 ACTUAL 2012/13 Percentage BUDGET VARIANCE EXPENDED R'000 3, 112, 3 3, 147, 822 76 35, 446 17, 21 16, 3 111 1, 102 13, 39 7, 0 8 59 6, 339 3, 089, 2 3, 117, 211 06 28, 005 % % 1. 1% 98. 9% 6. 4% 93. 6% 47. 3% 52. 7% 0. 9% 99. 1% • Goods and services: The remaining balance is as a result of the halting of procurement processes for the acquisition of the energy reporting tool, which was allocated R 6 m from the EEDSM reclassification • Transfer payments: The remaining balance is solely due to the performance of the Non -grid electrification project. Due to a number of challenges experienced, which led to the delayed implementation at the beginning of the financial year, the project ‘s total allocation could not be fully utilized. Contracts are already in place, with service providers carrying out the necessary work which will be the basis for a roll over motivation. 10

Programme 5: Nuclear Energy and Regulation VOTE 29: ENERGY Compensation of employees Goods and services Transfers and subsidies Payments for capital Assets 2012/13 ADJUSTED BUDGET 2012/13 R'000 ACTUAL 2012/13 Percentage BUDGET VARIANCE EXPENDED R'000 % 646, 88 642, 7 4, 15 3 33 0 0. 6% 7, 80 8, 7 283 -476 -6. 1% 28, 54 23, 4, 59 8 954 4 16. 1% 610, 49 610, 1 496 -5 0. 00% 3 7 37 100. 0% % 99. 4% 106. 1% 83. 9% 100. 0% • Goods and services: An additional R 7 million was allocated from the EEDSM reclassification and the under spent is as a result of some projects that could not be finalized before year end. These will be motivated for a roll over into the 2013/14 financial year 11

4 th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2012/13 VOTE 29: ENERGY TOTAL ENERGY Programme 2 Transnet Pipelines Programme 3 Programme 5 2012/13 Percentage BUDGET ACTUAL VARIANCE EXPENDED R'000 6, 304, 841 6, 276, 700 1, 500, 000 EEDSM Municipalities 200, 000 EEDSM – Eskom 820, 629 28, 141 % 0. 4% % 99. 6% 0. 00% 100. 00% - 56, 110 - 0. 00% 100. 00% INEP - Municipalities 1, 151, 443 - 0. 00% 100. 00% INEP - Eskom 1, 879, 368 - 0. 00% 100. 00% 28, 072 32. 49% 67. 51% 0. 00% 100. 00% 17. 2% 82. 8% INEP – Non-grid 86, 400 NNR 42, 912 567, 579 NECSA Programme 1 R'000 2012/13 1, 500, 000 SANEDI Programme 4 2012/13 ADJUSTED BUDGET Households 400 58, 328 331 - 69 12

Thank You! 13