Communications Communications Portfolio CommitteePortfolio Committee

12 April 200512 April 2005

ObjectiveObjective

• Present the 2004 Annual ReportPresent the 2004 Annual Report

• Share with PCC NEMISA strategy Share with PCC NEMISA strategy (under construction)(under construction)

Review of 2004Review of 2004

• Governance and Management Governance and Management Board of DirectorsBoard of Directors - fully - fully complemented with variety of skills and complemented with variety of skills and expertiseexpertise

ManagementManagement – appropriate capacity – appropriate capacity needs to be built to aggressively move needs to be built to aggressively move the organization forwardthe organization forward

Key Milestones reachedKey Milestones reached

• 2004 Television Production Learnership successfully 2004 Television Production Learnership successfully delivereddelivered

• The Decade Speaks Radio documentaries aired on 13 The Decade Speaks Radio documentaries aired on 13 public radio stations with excellent reviewspublic radio stations with excellent reviews

• Language and Heritage Portal spanning over 12 languages Language and Heritage Portal spanning over 12 languages (inclucing Koi & San) launched(inclucing Koi & San) launched

• Digital Migration Training for 7 African countries Digital Migration Training for 7 African countries conducted for CBAconducted for CBA

• Khuluma Radio Project – election training for community Khuluma Radio Project – election training for community radio radio

• Joint NEMISA-Telkom Graduation CeremonyJoint NEMISA-Telkom Graduation Ceremony

• Injection of NEMISA trained male and female students into Injection of NEMISA trained male and female students into Venda & Tsonga SABC TV newsVenda & Tsonga SABC TV news

• Successful producers from NEMISA in SA-fmSuccessful producers from NEMISA in SA-fm

ChallengesChallenges

• Increasing the number of learners per yearIncreasing the number of learners per year• Set specific targets for training of individuals Set specific targets for training of individuals

with disabilitieswith disabilities• Securing jobs for graduates after completion Securing jobs for graduates after completion

of trainingof training• Initiate activities leading to increasing the Initiate activities leading to increasing the

revenue baserevenue base• Work closely with provinces and local govt. Work closely with provinces and local govt.

structures to ensure broader accessstructures to ensure broader access• Re-invest in facilities to achieve ‘leading Re-invest in facilities to achieve ‘leading

state-of-the-art’ status in the training state-of-the-art’ status in the training industry.industry.

Strategic FocusStrategic Focus

• Learnerships Learnerships – working with the relevant SETA in the – working with the relevant SETA in the provision of learnerships to unemployed youthprovision of learnerships to unemployed youth

• Short courses Short courses – developing industry specific courses to – developing industry specific courses to cater for pratitioners in fulltime jobscater for pratitioners in fulltime jobs

• Strengthening Content Development Strengthening Content Development – by expanding the – by expanding the current offerings that will contribute to the social current offerings that will contribute to the social cohesioncohesion

• Growing the Animation IndustryGrowing the Animation Industry -- by injecting 2D & 3D by injecting 2D & 3D skilled individuals for short and long-form animationskilled individuals for short and long-form animation

• Continental trainingContinental training –– grow further relationships and grow further relationships and co-operation within the continentco-operation within the continent

Resource requirementsResource requirements

• Attracting of Skilled employeesAttracting of Skilled employees

• Funding/cash injectionFunding/cash injection

• Investment in appropriate Investment in appropriate technologiestechnologies

2005 FINANCIAL 2005 FINANCIAL OVERVIEWOVERVIEW

MTEF AllocationMTEF Allocation

• 2003/20042003/2004 -- R 13 753 000R 13 753 000

• 2004/20052004/2005 -- R 14 578 000R 14 578 000

• 2005/20062005/2006 -- R 18 163 000R 18 163 000

Adjusted MTEFAdjusted MTEF

• 2003/2004 + R 1 400 000 = R 15 2003/2004 + R 1 400 000 = R 15 153 000153 000

• 2004/2005 + R 2 300 000 = R 16 2004/2005 + R 2 300 000 = R 16 878 000878 000

2003/2004 Analysis of Revenue2003/2004 Analysis of Revenue

84%

4%1%6%5%

Grants

Admin Fees

Equipment/FacilityHireShort Courses

Other income

How we spent the funds for How we spent the funds for 2003/4?2003/4?

18%

6%

32%

25%

0%

19%

Training programme costs

Licence fees

Lease rental

Staff related expenses

Operational Expenses

Financial Summary Financial Summary 2003/20042003/2004• Grants increased by 15%Grants increased by 15%• Revenue from admin fees decreased Revenue from admin fees decreased

by 83%by 83%• Revenue from short courses decreased Revenue from short courses decreased

by 87%by 87%• Revenue from equipment hire Revenue from equipment hire

increased by 850%.increased by 850%.• Operational expenditure i.e. actual Operational expenditure i.e. actual

expenditure decreased by 7% expenditure decreased by 7%

Financial PerformanceFinancial Performance

2003/20042003/2004 RR

RevenueRevenue 17 885 58317 885 583

Operating expensesOperating expenses 22 931 20222 931 202

5 009 5395 009 539

Less: DepreciationLess: Depreciation 4 969 913 4 969 913

NetNet DeficitDeficit ( (39 626)39 626)

Thank youThank you