BUSINESS PERFORMANCE REPORT Overview of performance against corporate KPIs Financial Performance Product and Network Performance Governance Internal Audit Management Letter Points Risk Management ID: 600078
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Slide1
QUARTER 2
BUSINESS PERFORMANCE REPORTSlide2
Overview
of
performance against corporate KPIs
Financial Performance
Product and Network
Performance
Governance
Internal Audit
Management Letter Points
Risk Management
Enterprise Development
Human Capital Development
INTRODUCTIONSlide3
Performance against corporate KPIsSlide4
Performance against corporate
KPIs
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q2 Target
Actual Performance
Achieved/Not Achieved
Variance
Explanation
SG 2: Ensure high levels of customer and stakeholder satisfaction by meeting their needs at all times.
Ensure network availability meets SLA requirements across all platforms
Weighted average availability based on product revenues
Weighted average availability based on product revenues of 99,80%
Weighted average availability based on product revenues of 99,80%
Weighted average availability based on product revenues of 99,89
Achieved
This target has been over-achieved due to better management of SENTECH’s national network.
Improve customer and stakeholder satisfaction
Customer service index
Baseline +5%
Complete survey recommendation monitoring tool.
Survey monitoring tool completed and issued
Achieved
Not
applicable
*
In
Quarter 2, eight KPIs are applicable and
6
out of 8 (75%) targets have been achieved Slide5
Performance against corporate KPIs
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q2 Target
Actual Performance
Achieved/Not Achieved
Variance
Explanation
SG 3: Drive organisational performance in to improve organisational effectiveness
Effective talent management
Performance ratings achieved
Average employee performance score of 3,2 for the 2016/17 financial year
Performance Reviews completed for all employees for Q2
0% performance reviews completed
Not Achieved
Disputes with the Union had ripple effects on signing of performance contracts. The performance reviews for bargaining employees were thus not done on time.
% Training Plan implemented
80% of the 2016/17 approved training plan interventions implemented
40% of the 2016/17 approved training plan interventions implemented
41.4% of approved training plan implemented.
Achieved
This target has been over-achieved by a marginal amount. This was due to the completion of additional training interventions than what was required during the quarter.Slide6
Performance against corporate KPIs
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q2 Target
Actual Performance
Achieved/Not Achieved
Variance
Explanation
SG 4: Ensure that the Company is financially sustainable.
Revenue diversification into international markets
No of Pan-African customers contracted (customers outside the Republic of South Africa)
Develop and implement Pan-African Strategy
Complete market research
Concept document developed and market research process initiated
Not Achieved
There have been delays in procuring a service provider to conduct the research. To be done by Q3.
Implement ESD and SED initiatives
% actual NPAT spent for the 2016/17 financial year
6% of actual NPAT spent for the 2016/17 financial year
Achieve 50% of budgeted ESD and SED spend
Actual spend is 183% for ESD & 72% SED
Achieved
This target has been over-achieved due to an additional number of ESD and SED Activities during Q2
Performance against corporate KPIsSlide7
Performance against corporate KPIs
Strategic Goal
Strategic Objectives
KPI
Annual Target
Q2 Target
Actual Performance
Achieved/Not Achieved
Variance
Explanation
SG 4: Ensure that the Company is financially sustainable.
Implement effective internal control system and compliance with applicable legislation
Clean audit achieved
Clean audit achieved
Audit action monitoring tool completed
Audit action monitoring tool completed and issued
Achieved
Not Applicable
Maintain a healthy earnings before Interest and tax (EBIT)
Earnings before interest and tax
R5.22 million
R2,08 million
R17 million
Achieved
This target has been over-achieved due mainly to dual illumination funds received as well as savings against budget for the following categories of expenditure: Operating, Selling and Administrative Expenditure.
Performance against corporate KPIsSlide8
Financial PerformanceSlide9
Financial
Performance
Q2 September 2016Slide10
R’000
Quarter 1
FY2017
Quarter 2
FY2017
YTD FY2017
Service
Actual
Budget
Variance
Actual
Budget
Variance
Actual
Budget
Variance
R '000
R '000
R '000
%
R '000
R '000
R '000
%
R '000
R '000
TV
146,528
156,434
(9,906)
(6%)
146,278
154,291
(8,014)
(5%)
292,805
310,725
(17,919)
(6%)
FM
69,231
71,085 (1,854)(3%) 74,378 73,757 620 1% 143,608 144,842 (1,234)(1%)MW 2,365 2,339 26 1% 2,338 2,339 (1)(0%) 4,703 4,678
25
1%
SW
6,582
8,186
(1,604)
(20%)
6,105
8,186
(2,081)
(25%)
12,687
16,372
(3,685)
(23%)
DTH
44,090
34,981
9,110
26%
45,891
38,666
7,226
19%
89,982
73,647
16,335
22%
Facility Rentals
16,020
14,368
1,652
11%
14,816
14,397
419
3%
30,836
28,766
2,071
7%
Continuing business
284,816
287,393
(2,577)
(1%)
289,806
291,637
(1,831)
(1%)
574,622
579,030
(4,407)
(1%)
Connectivity services
1,642
1,588
54
3%
1,630
1,475
155
11%
3,272
3,062
209
7%
DTT: Dual Illumination
22,500
-
22,500
100% 22,500 - 22,500 100% 45,000 - 45,000 100%Sundries 697 - 697 100% 2 - 2 100% 700 - 700 100%Total services 309,655 288,980 20,675 7% 313,938 293,111 20,827 7% 623,594 582,092 41,502 7%
TV revenue is below budget mainly due to DTT revenue not materializing as a result of optimization of the network.SW revenue is below budget due to Radio Lead Africa suspension, contract termination of TWR and no new revenue realised per our projected 8hrs/day additional sales.
Financial Performance
Revenue Per ServiceSlide11
Product and Network PerformanceSlide12
Product and Network Performance
Network
Services
SLA
Target (%)
Sentech Performance (%)
Weighted
Ave
Terrestrial Television
99.7
99.88
53.13
FM Radio
99.7
99.88
27.01
Medium Wave Radio
99.5
99.96
0.85
Short Wave Radio
99.5
99.97
2.22
Satellite
99.8
99.94
16.68
Overall Network availability
99.80
99.89Slide13
The priority activities for the Board during this quarter
were:
Annual
General
Meeting
R
ecruitment
of the
CFO
Board evaluation
Consideration
of the 2015/16 Annual Financial Statements and Annual
Report
Board
and Board Committee
meetings
Compliance with statutory requirements
SENTECH
has achieved a clean audit for the fourth successive year.
GovernanceSlide14
Internal Audit
Internal Audit is on track with the execution of its Annual Internal
Audit
Plan. Slide15
SENTECH has enjoyed four years of unqualified audit opinion since 2012/2013.
The
following is a summary of progress against the 26 findings issued by the external auditors on 31 July 2016
:
Forty
two percent (42%) of findings have been addressed,
31
% are
ongoing
27
% are in progress.
Management Letter Points (MLPs)Slide16
Developments
and emerging risks associated with our big
customers are being monitored and mitigation strategies on
managing these emerging
risks are in place.
The revenue assurance risks
are being
managed to ensure that all revenue due to SENTECH is collected.
Management will continue to
double efforts in implementation of all activities related to KPIs to reduce the risk levels.
Risk ManagementSlide17
SENTECH
supported 13
SMMEs which in
turn created 68
jobs and 5 internship programmes for young
people.
F
our
were offered grants to the value of R2.7 million that was used for equipment, IT systems, office infrastructure and training
. Other SMMEs were
in the Incubation programme
amounting to
R3.5 million.
Enterprise Development
No
Company name
Jobs created
Job opportunities
Grant Funding
1
Batsha IT Solutions
2
2
Centrax
5 Internships
3
Fibretronics
40
4
Moagi
Technologies
2
Incubation Programme
5
Axol(Prt) Ltd
4
6
GeneAnthony IT & Projects Management Solutions
5
7
Bumba Technos
2
8
Pacesetter Network1 92VP Electrical Services7 10MPowerIT2 11Simplified Intelligent Solutions0 12
Imvana IT Solutions
1
13
Epiq
IT Solutions
2
TOTAL
68
5Slide18
Attracting
African talent remained a key driver of our recruitment process.
At
top management levels 100% are black, 87% at senior management and 72% at specialists and middle management levels are black; and 82% for skilled and technical
levels
Most
of the human capital activities are on
track, namely,
overtime management,
employee wellness
,
policy reviews, staff retention,
employee relations, health and safety,
and training.
Performance
management and succession
planning are being addressed.
Human Capital DevelopmentSlide19
Human Capital
D
evelopment…
Building high performance teams through:
Training :
40% of the 2016/17 approved training plan interventions implemented
Bursaries :
35 of the 106 bursary applications for 2016/2017 were approved
Changing
the environment
Office space
: 30
% of construction
to be
done in this financial year
STP
Canteen re-establishment :
Estimated operational date before end of Q4
Appointment of new CFO
This
appointment completes the filling of
vacancies at Executive Director level.Slide20
Thank
You!