SITA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE

SITA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE 13 NOVEMBER 2002 © SITA (Pty) Ltd 2002 – www. sita. co. za

THE PRESENTATION… • SITA Overview • The Year Under Review • Current Year Forecast • Conclusion © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA OVERVIEW • Information Technology (IT) planning and Advice § Leveraging of economies of scale through value adding acquisition of IT goods and services § Setting of standards and quality assurance on security and interoperability § Promoting use of information technology to improve service delivery(e-Government) § Research and centre of excellence on electronic government and § the provision of transversal information services, i. e. services to more than one government department © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA OVERVIEW cont. • The restructuring of SITA into a holdings company with three subsidiaries so as to ring fence in subsidiaries the existing defence and non-defence services and to establish a third subsidiary focusing on new e-Services to be provided by SITA • The proposed negotiations with Arivia. Kom and private sector companies to establish partnerships with those companies, aimed at transferring SITA’s legacy functions to those companies over a three year period © SITA (Pty) Ltd 2002 – www. sita. co. za

THE ORGANISATIONAL STRUCTURE SITA (Pty) Ltd SITA Defense Services SITA Civilian Services Delivery of business solutions and services to the Department of Defense • • • Data Center Networks Application Support Application Projects IS Security © SITA (Pty) Ltd 2002 – www. sita. co. za In partnership with industry SITA C Delivers total IT services solutions to Government • • • Data Center Networks Application Support Application Projects IS Security SITA e-Services Transforming the way Government conducts business through technology • • • Certification Acquisition Architecture Research & Development Security framework

The SITA operating model focus Delivery “To achieve high impact results, how should we be running and approaching projects and project management? ” Finance & Treasury Client interface “To thrill our clients, how should we be interfacing with our client base? ” SITA Corporate Human Capital “To achieve our vision, how will we sustain our ability to change and improve? ” © SITA (Pty) Ltd 2002 – www. sita. co. za • ‘To ensure fiscal survival and sustainability, how should we be managing our finances ? ”

SITA Civilian… • Main contributor to revenue - delivered excellent ROI and exceeded projected revenue budget with 15% • Maximised customer retention - retained 90% of its customers per service line • Integration of IT functions - integration figures total seven National departments and two Provinces, each with an average of 11 departments © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA Defence will strive to… • Increase the effectiveness of its chosen operating model of training newly established working culture • Broaden its client reach by effectively pursuing Government departments throughout Africa © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA Defence… • Transformation and restructuring refinement and improvement of the unit’s staff, working culture and operational model • Accomplished business initiatives – The Technology Master Plan was refined to address issues of security within the client’s environments • Services offered caught the attention of the international market, which could have long term potential benefit © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA E SITA e-Service… • Establishment of ITAC - accelerating the implementation and co-ordination of Government IT systems • Initiation of an e-Government gateway developing a single window through which citizens can interface with Government any time and place © SITA (Pty) Ltd 2002 – www. sita. co. za

HUMAN CAPITAL • Achieved a racial balance of 41: 59 in favour of HDI’S • Perfomance culture introduced with Balance Scorecard as a measurement instrument • Balanced promotion of representivity with retention of specilalist skills • Specific targets identified on which reports will submitted to the DOL © SITA (Pty) Ltd 2002 – www. sita. co. za

TREASURY AND FINANCE © SITA (Pty) Ltd 2002 – www. sita. co. za

REVENUE For the year ended 31 March 2002… SITA has increased revenue 34% to R 1, 36 -billion from R 1, 02 -billion in the previous year © SITA (Pty) Ltd 2002 – www. sita. co. za

REVENUE R million © SITA (Pty) Ltd 2002 – www. sita. co. za

NETT LOSS AFTER TAX SITA improve net loss after tax with 61% Down from R 43, 4 -million in 2001 to R 16, 9 -million for 2002 © SITA (Pty) Ltd 2002 – www. sita. co. za

NETT LOSS AFTER TAX R million © SITA (Pty) Ltd 2002 – www. sita. co. za

OPERATIONAL LOSS SITA decrease operating loss with +50% from R 72, 6 -million to R 30, 5 -million © SITA (Pty) Ltd 2002 – www. sita. co. za

OPERATIONAL LOSS R million © SITA (Pty) Ltd 2002 – www. sita. co. za

ACTUAL REVENUE 2000/2001/2002 BUDGETED REVENUE 2003 R million © SITA (Pty) Ltd 2002 – www. sita. co. za

OPERATING PROFIT (LOSS) Budget R million © SITA (Pty) Ltd 2002 – www. sita. co. za

CASH AND CASH EQUIVALENTS R million © SITA (Pty) Ltd 2002 – www. sita. co. za Cash and Bank Rm

ANNUAL OPERATING EXPENSES R million © SITA (Pty) Ltd 2002 – www. sita. co. za

CURRENT YEAR FORECAST Management will concentrate on • Implementing the goals of the Act thus achieving : – Lowering of costs – Increasing productivity – Providing choice and convenience to citizens © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA Civilian will strive to… • Deliver effective and efficient public services • Building competitiveness • Creating value for clients • Implement business opportunities with local authorities • Establishment of a command centre © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA E SITA e-Service will strive to… • Consolidate all Government ICT contracts • Co-ordinate Government’s buying power • Development and consolidation of Government’s IT network • Improve Government’s value spend on ICT and secure interoperability, while eliminating duplication © SITA (Pty) Ltd 2002 – www. sita. co. za

SITA MANAGEMENT SITA’s management will strive to… • Increase revenue • Improve shareholder value • Enhance its service delivery to Government • Strengthen the company’s financial disciplines • Fortify its own capacity to ensure both conformance with statutory requirements, as well as performance improvement © SITA (Pty) Ltd 2002 – www. sita. co. za

IN SUMMARY © SITA (Pty) Ltd 2002 – www. sita. co. za

I am confident that during the period under review, SITA has laid a strong foundation that will allow us to achieve greater success within the ensuing financial year © SITA (Pty) Ltd 2002 – www. sita. co. za

Thank you © SITA (Pty) Ltd 2002 – www. sita. co. za