Click to edit Master subtitle style 1 Budget 2011 – 2012 FY.

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11

Budget 2011 – 2012 FY

22

Market factors

33

Economic factors - CPI

2005 2006 2007 2008 2009 20102011 (F)

2012 (F)

2013 (F)

CPI 3.40 4.60 7.20 11.50 7.10 4.30 4.60 5.30 5.60

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Forecast : Reserve Bank

44

Economic factors - PPI

2005 2006 2007 2008 2009 20102011 (F)

2012 (F)

2013 (F)

PPI 3.70 7.70 10.90 14.20 -0.10 6.00 5.50 6.80 7.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Source : Standard Bank

55

Economic factors – Prime rate

2005 2006 2007 2008 2009 20102011 (F)

2012 (F)

2013 (F)

Prime rate 10.50 12.50 14.50 15.00 10.50 9.00 9.00 11.00 12.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Source : Standard Bank

66

Economic factors – Prime rate

0

5

10

15

20

25

30

Dec-48 Dec-54 Dec-60 Dec-66 Dec-72 Dec-78 Dec-84 Dec-90 Dec-96 Dec-02 Dec-08

Source : Reserve Bank

77

Economic factors – GDP

2005 2006 2007 2008 20092010 (F)

2011 (F)

2012 (F)

2013 (F)

GDP 5.00 5.60 5.50 3.70 -1.80 2.90 3.70 4.00 4.60

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00Source : Standard Bank

88

Economic factors – Fuel Price

2005 2006 2007 2008 2009 2010 2011 YTD

Petrol 520 600 664 886 740 809 884

Diesel 498 583 627 938 670 742 822

-

100

200

300

400

500

600

700

800

900

1,000

Mass broadband adoptionto drive a decline

G F C

De-coupling due tointernet substitution

Growth traditionallymatched GDP

0

50

100

150

200

250

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Digital substitution causing decline in letters

GDP and mail volumeindex (1993 = 100)

Disruptivescenario

-6.0%

Volume declines2010–2020 CAGRInt'l comparison scenario

-2.0%Midrangescenario

-3.5%

Forecast GDP

Forecast mail volumes

Real GDP

Source: Australia Post letter volume data; ABS GDP data; Economist Intelligence Unit international GDP data; BCG analysis

1010

Mail volumes vs GDP

Source Royal Mail & Pitney Bowes

1111

SA Mail volumes (’000)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Growth % -9% 3% 4% 4% 5% 4% -2% -8% -3%

Volume 1,542,826, 1,398,518, 1,446,337, 1,504,970, 1,569,958, 1,641,706, 1,706,350, 1,671,329, 1,542,253, 1,490,484,

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

1212

Year end estimate

Year end estimate

1313

R'0002010

Actual2011

Budget2011

ForecastChange Change

Revenue 5,579,479 5,926,634 5,719,619 140,140 3%Expenses 5,213,079 5,570,129 5,524,530 (311,451) (6%)

Operating profit 366,400 356,505 195,089 (171,311) (47%)Subsidy 118,065 119,428 250,235 132,170 112%Taxation (78,732) (120,094) (70,076) 8,656 11%Non ops items (112,603) (59,174) (222,786) (110,183) (98%)

Net profit 293,130 296,665 152,462 (140,668) (48%)

Ops profit margin 6.6% 6.0% 3.4% (3.2%)Net profit margin 5.3% 5.0% 2.7% (1.2%)

1414

Profit trend

1515

Operating profit trend

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011

Operating profit 253,999 459,579 501,804 395,071 366,400 195,089

Change 79,905 205,580 42,225 (106,733) (28,671) (171,311)

Change 45.9% 80.9% 9.2% (21.3%) (7.3%) (46.8%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

500,000

600,000

1616

Net profit trend

2005/06 2006/07 2007/08 2008/09 2009/10 Forecast 2011

Net profit 472,010 351,176 377,118 366,078 293,130 152,462

Change (717,912) (120,834) 25,942 (11,040) (72,948) (140,668)

Change (60.3%) (25.6%) 7.4% (2.9%) (19.9%) (48.0%)

(70.0%)

(60.0%)

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

(800,000)

(600,000)

(400,000)

(200,000)

0

200,000

400,000

600,000

1717

Profit margin

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011

Operating profit margin 5.5% 9.1% 9.4% 6.9% 6.6% 3.4%

Net profit margin 10.1% 6.9% 7.0% 6.4% 5.3% 2.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1818

Revenue

1919

19

Revenue2011 2012 Change Change ChangeR'000 R'000 R'000 %

Mail revenue 3,836,199 3,982,657 146,458 3.8%Logistics revenue 689,907 746,351 56,444 8.2%Postbank revenue 182,019 197,117 15,098 8.3%Financial services revenue 474,481 520,225 45,744 9.6%Interest revenue 467,477 452,181 (15,296) (3.3%)*Sundry revenue 69,535 83,463 13,928 20.0%

5,719,619 5,981,994 262,375 4.6%

Note * Trust centre R8 million revenue.

2011 2012Mix % Mix %

Mail revenue 67% 67%Logistics revenue 12% 12%Postbank revenue 3% 3%Financial services revenue 8% 9%Interest revenue 8% 8%Sundry revenue 1% 1%

100% 100%

2020

20

Revenue (R’000)

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Revenue 4,392,028 4,656,028 5,060,641 5,362,169 5,726,670 5,579,479 5,719,618 5,981,994

Change % 6.0% 8.7% 6.0% 6.8% (2.6%) 2.5% 4.6%

(4%)

(2%)

0%

2%

4%

6%

8%

10%

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2121

21

Mail revenue (R’000)

CPI forecast 2011 – 4.6%. GDP forecast 2011 – 3.7%. Tariff increase approved @ 4.5%, however effective increase for

standard 4,2%. Mail revenue increase - 3.8 %.

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Mail revenue 3,072,035 3,336,624 3,510,485 3,671,073 3,791,296 3,836,199 3,982,657

Change % 7.4% 8.6% 5.2% 4.6% 3.3% 1.2% 3.8%

Tarif f 4.1% 4.5% 4.3% 5.8% 9.9% 6.7% 4.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2222

22

Mail revenue

2010/10 2010/11 2011/12 2011/12 2011/12Mix Forecast Budget Change Change% R'000 R'000 R'000 %

Mail revenue 100% 3,836,198 3,982,657 146,459 3.8%Bulk mail revenue 61% 2,334,129 2,404,153 70,024 3.0%Box revenue 8% 322,301 347,762 25,462 7.9%Franking revenue 7% 253,097 258,159 5,062 2.0%Envelope revenue 5% 190,762 196,485 5,723 3.0%Stamp revenue 4% 171,370 176,511 5,141 3.0%Parcel revenue 4% 138,759 149,860 11,101 8.0%Foreign revenue 3% 119,062 122,634 3,572 3.0%Registered letter revenue 3% 113,491 116,896 3,405 3.0%Epostal 2% 80,005 92,006 12,001 15.0%Philately revenue 2% 63,463 66,636 3,173 5.0%Secure mail revenue 1% 32,388 33,863 1,475 4.6%BRS revenue 0% 6,643 6,643 0 0.0%Sundry revenue 0% 10,728 11,050 322 3.0%

2323

23

Logistics revenue (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Logistics 722,494 725,740 703,406 730,551 653,976 689,939 746,351

Change % 2% 0% (3%) 4% (10%) 5% 8%

(15%)

(10%)

(5%)

0%

5%

10%

600,000

620,000

640,000

660,000

680,000

700,000

720,000

740,000

760,000

CPI forecast 2011 – 4.6%. GDP forecast 2011 – 3.7%. Market growth is 3 times that of GDP. Logistics revenue increase - 8 %.

2424

24

Financial Services revenue (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Financial serv 403,254 446,071 415,685 412,522 435,862 474,481 520,225

Change % 0% 11% (7%) (1%) 6% 9% 10%

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

100,000

200,000

300,000

400,000

500,000

600,000

2525

25

Postbank non interest revenue (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Postbank 93,479 99,865 127,428 153,525 143,161 182,019 197,117

Change % 8% 7% 28% 20% (7%) 27% 8%

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

50,000

100,000

150,000

200,000

250,000

2626

26

Interest income (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10 Forecast 2011 Budget 2012

Interest 286,279 380,823 505,127 679,988 495,239 467,306 452,181

Change % 42% 33% 33% 35% (27%) (6%) (3%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2727

27

Interest income (R’000)-200bp -150bp -100bp -50bp Base 50bp 100bp 150bp 200bp

Fixed 2011 24,015 24,015 24,015 24,015 24,015 24,015 24,015 24,015 24,015 Floating 2011 10,661 12,164 13,667 15,169 24,938 18,175 19,678 21,180 22,683 Total 34,676 36,179 37,682 39,185 48,953 42,190 43,693 45,196 46,698 Net Income@Risk to YE (14,276) (12,774) (11,271) (9,768) (6,763) (5,260) (3,757) (2,254) Net Income@Risk to YE -29.16% -26.09% -23.02% -19.95% 0.00% -13.81% -10.74% -7.68% -4.61%Fixed 2012 2,488 2,488 2,488 2,488 2,488 2,488 2,488 2,488 2,488 Floating 2012 54,216 61,151 68,087 75,022 81,958 88,894 95,829 102,765 109,700 Total 56,704 63,639 70,575 77,511 84,446 91,382 98,317 105,253 112,189 Net Income@Risk to YE (27,742) (20,807) (13,871) (6,936) 6,936 13,871 20,807 27,742 Net Income@Risk % -32.85% -24.64% -16.43% -8.21% 0.00% 8.21% 16.43% 24.64% 32.85%

PostOffice Income Sensitivity

-200bp -150bp -100bp -50bp Base 50bp 100bp 150bp 200bpFixed 2012 - - - - - - - - - Floating 2012 11,933 13,333 14,734 16,135 17,536 18,936 20,337 21,738 23,138 Total 11,933 13,333 14,734 16,135 17,536 18,936 20,337 21,738 23,138 Net Income@Risk to YE (5,603) (4,202) (2,801) (1,401) 1,401 2,801 4,202 5,603 Net Income@Risk % -31.95% -23.96% -15.98% -7.99% 0.00% 7.99% 15.98% 23.96% 31.95%Postbank Income Sensitivity Fixed 2011 130,421 133,396 136,372 139,347 142,323 145,298 148,274 151,249 154,224 Floating 2011 23,317 26,325 29,333 32,342 35,350 38,359 41,367 44,376 47,384 Total 153,737 159,721 165,705 171,689 177,673 183,657 189,641 195,625 201,608 Net Income@Risk to YE (23,936) (17,952) (11,968) (5,984) 5,984 11,968 17,952 23,936 Net Income@Risk to YE -13.47% -10.10% -6.74% -3.37% 0.00% 3.37% 6.74% 10.10% 13.47%Fixed 2012 28,075 28,075 28,075 28,075 28,075 28,075 28,075 28,075 28,075 Floating 2012 220,774 247,303 273,833 300,363 326,893 353,423 379,953 406,482 433,012 Total 248,849 275,379 301,909 328,439 354,968 381,498 408,028 434,558 461,088 Net Income@Risk to YE (106,119) (79,590) (53,060) (26,530) 26,530 53,060 79,590 106,119 Net Income@Risk % -29.90% -22.42% -14.95% -7.47% 0.00% 7.47% 14.95% 22.42% 29.90%

Postbank Income Sensitivity

2828

Expenses

2929

29

Expenses analysis

% of Revenue 2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget

2012

Staff expenses 46% 44% 44% 44% 47% 49% 49%Training expenses 0% 0% 1% 1% 0% 1% 1%External service providers 7% 9% 9% 9% 8% 8% 7%Transport expenses 12% 10% 10% 11% 10% 10% 10%Accommodation expenses 6% 6% 6% 7% 7% 9% 10%Material and services 5% 4% 4% 5% 5% 5% 5%Interest paid 3% 3% 2% 3% 2% 1% 1%Depreciation 3% 3% 3% 3% 3% 3% 3%Marketing 2% 1% 2% 2% 1% 2% 1%Communication services 3% 2% 2% 2% 2% 3% 3%Security services 2% 2% 2% 2% 2% 2% 2%International charges 1% 2% 1% 1% 1% 1% 1%Travel expenses 1% 1% 1% 1% 0% 1% 1%Bank charges 1% 1% 1% 1% 1% 0% 0%Audit fees 0% 0% 0% 0% 0% 0% 0%Cost of insurance 1% 1% 0% 1% 1% 1% 1%Provisions & write-offs 1% 1% 1% 0% 1% 0% 0%Currency adjustments 0% 0% 0% 0% 0% 0% 0%Sundry expenses 1% 1% 1% 1% 1% 1% 1%

95% 91% 91% 93% 93% 97% 96%

Ops margin 5% 9% 9% 7% 7% 3% 4%

3030

30

Expenses (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Expenses 4,402,029 4,601,062 4,860,365 5,331,599 5,213,079 5,524,554 5,753,639

Change % (4%) (5%) (6%) (10%) 2% (6%) (4%)

Cost to income ratio 95% 91% 91% 93% 93% 97% 96%

(20%)

0%

20%

40%

60%

80%

100%

120%

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

3131

31

Staff costs

Staff costs Staff costs as a percentage of expenses 51%. Staff costs as percentage of revenue 49%. Staff increases above inflation not supported by productivity and revenue

increase cannot be sustained. CPI forecast for 2011 is 4.6%. SAPO can only afford 5% and any higher increase will have to be supported by

revenue increase and productivity increase.

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

% of expenses 49% 49% 48% 47% 50% 51% 51%

% of revenue 46% 44% 44% 44% 47% 49% 49%

40%

42%

44%

46%

48%

50%

52%

3232

32

Staff costs 2011/12

SA Post Office SSC Logistics Docex Group MixR'000 R'000 R'000 R'000 R'000 %

Salary 1,953,279 27,559 88,407 19,224 2,088,469 72%Service bonus 102,865 1,828 5,397 0 110,090 4%Recognition 11,903 125 0 0 12,028 0%Motor Scheme Management 10,032 108 1,085 0 11,225 0%Pension Contribution 240,824 3,375 10,657 0 254,856 9%Medical Contribution 241,556 3,867 4,066 0 249,489 9%Home-Owner's Allow 33,059 779 0 0 33,838 1%Overtime & night duty 43,420 2,340 7,603 0 53,363 2%Staff allowances (acting, standby , driver & transport) 20,560 831 1,752 0 23,143 1%Skills levy 19,360 248 1,112 0 20,720 1%UIF 17,691 223 955 0 18,869 1%Workmen compensation 12,566 0 1,658 0 14,224 0%Industrial levy council 0 0 7,959 0 7,959 0%Directors fees 3,949 0 0 0 3,949 0%

2,711,064 41,283 130,651 19,224 2,902,222

3333

33

Transport costs

Transport costs Transport expenses as a percentage of expenses is 11% and as percentage of revenue is 10%.

SSC and National line haul integration synergies. Budget – 5% increase.

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

% of expenses 13% 11% 11% 12% 11% 11% 11%

% of revenue 12% 10% 10% 11% 10% 10% 10%

0%

2%

4%

6%

8%

10%

12%

14%

3434

34

Property Expenses

Property Expenses Accommodation costs as a percentage of expenses will increase by 1% to

10%and as percentage of revenue will be 10%.

Electricity costs will increase by 25% as a result of Eskom annual tariff increase.

New rental properties. Budget – 13% increase.

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

% of expenses 6% 7% 7% 7% 8% 9% 10%

% of revenue 12% 10% 10% 11% 10% 10% 10%

0%

2%

4%

6%

8%

10%

12%

14%

3535

35

PRMA2009/10 2010/11 2011/12R'000 R'000 R'000

Balance sheetOpening balance 941,466 1,032,595 1,218,259Provisions made 196,401 310,308 217,157Benefits paid (105,272) (124,644) (130,985)

Closing balance 1,032,595 1,218,259 1,304,431

PRMA total liability 1,364,654 1,382,000 1,361,000Balance sheet provision % 76% 88% 96%

Income statement expenseProvisions made 196,401 310,308 217,157Growth in PRMA asset (89,609) (55,187) (58,830)

106,792 255,121 158,327

Notes

Actuarial valuations will only be available in April / May.

Increase in liability in 2010 due to significant increase in medical contributions rates (18.6% - 2010 & 8.6% 2011)

3636

Capex & subsidy

3737

Subsidy MTEF allocationsSubsidy allocation

2010/11 FY – R306,077 million,2011/12 FY – R180,442 million ENE 2011,2012/13 FY – R51,964 million ENE 2011,2013/14 FY – R54,822 million ENE 2011.

Subsidy allocation required to fund USO costs2010/11 FY – R306,077 million,2011/12 FY – R354 million,2012/13 FY – R372 million,2013/14 FY – R392 million.

3838

Capex investment

2006 2007 2008 2009 2010 2011 (F) 2012 (F)

Capex 242,120 300,643 250,435 421,975 356,651 359,904 410,500

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

3939

Capex investment

2006 2007 2008 2009 2010 2011 (F) 2012 (B)

Net profit 472,010 351,176 377,118 366,078 293,130 152,462 155,994

Capex 242,120 300,643 250,435 421,975 356,651 359,904 410,500

% of revenue 5% 6% 5% 7% 6% 6% 7%

0%

1%

2%

3%

4%

5%

6%

7%

8%

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

4040

Funding

SA Post Office Group (R'000) 2011 2012 2013 2014 2015 2016

Available cash 803,969 858,758 768,441 627,194 469,598 281,445Cash generated from ops activities 146,205 162,288 180,139 199,954 221,949 246,364Subsidy 268,489 157,895 45,614 0 0 0Available cash c/f 1,218,663 1,178,941 994,194 827,148 691,548 527,809

Capex (359,904) (410,500) (367,000) (357,550) (410,103) (389,158)858,758 768,441 627,194 469,598 281,445 138,651

Borrowings 0 0 0 200,000 300,000 500,000

Balance after borrowings 858,758 768,441 627,194 669,598 581,445 638,651

Expense cover 1.9 1.6 1.2 1.2 1.0 1.0

Interest expense @ 8,5% 0 0 0 17,000 25,500 42,500

SummaryCapex investments that are not generating cashflows in excess of of cost of capital is not sustainable.Capex investments are improving infrastructures due to legacy issues.Cost of interest expense is not factored in cash generated from operating activities.Unless subisdy is received, the Group will not be able to invest more than R150 million pa in Capex from 2013.

4141

Budget 2011/12

4242

SA Post Office Group Budget 2011/12

R'0002011

Forecast2012

BudgetChange Change

Revenue 5,719,619 5,981,994 262,375 4.6%Expenses 5,524,530 5,753,639 (229,109) (4.1%)

Operating profit 195,089 228,355 33,266 17.1%Subsidy 250,235 157,895 (92,340) (36.9%)Taxation (70,076) (71,805) (1,729) 2.5%Non ops items (222,786) (158,451) 64,335 (28.9%)

Net profit 152,462 155,994 3,532 2.3%

Ops profit margin 3.4% 3.8% 0.4%Net profit margin 2.7% 2.6% (0.1%)

4343

SA Post Office excl subsidiaries Budget 2011/12

R'0002011

Forecast2012

BudgetChange Change

Revenue 5,015,695 5,227,796 212,101 4%Expenses 4,953,057 5,148,157 (195,100) (4%)

Operating profit 62,638 79,639 17,001 27%Subsidy 250,235 157,895 (92,340) (37%)Taxation (68,383) (69,631) (1,248) 2%Non ops items (103,238) (32,769) 70,469 (68%)

Net profit 141,252 135,134 (6,118) (4%)

Ops profit margin 1.2% 1.5% 0.3%Net profit margin 2.8% 2.6% (0.2%)

4444

Logistics Budget 2011/12

R'0002011

Forecast2012

BudgetChange Change

Revenue 703,924 754,198 50,274 7%Expenses 571,497 605,481 (33,984) (6%)

Operating profit 132,427 148,717 16,290 12%Taxation (1,687) (2,174) (487) (29%)Non ops items (119,530) (125,683) (6,153) (5%)

Net profit 11,210 20,860 9,650 86%

Net profitCourier Freight Group (27,058) (25,912) 1,146 4%Speed Services Couriers 33,931 41,182 7,252 21%Docex 4,338 5,590 1,252 29%

11,211 20,860 9,650 86%

Ops profit margin 18.8% 19.7% 0.9%Net profit margin 1.6% 2.8% 1.2%

4545

Budget 2011/12 – Business units

Logistics SA Postbank Post Office GroupR'000 R'000 R'000 R'000

Revenue 754,198 560,825 4,666,971 5,981,994Expenses 605,480 165,196 4,982,963 5,753,639

148,718 395,629 (315,992) 228,355Support costs recovery (72,087) (60,108) 132,195 0Transfer pricing : Consumer Services (53,596) (297,264) 350,860 0Operating profit / (loss) 23,035 38,257 167,063 228,355Subsidy 0 0 157,895 157,895Taxation (8,015) (16,608) (47,182) (71,805)Non operating items 0 0 (158,451) (158,451)

Net profit / (loss) 15,020 21,649 119,325 155,994

Ops profit margin 3% 7% 4% 4%

Net profit margin 2% 4% 3% 3%

Notes:

1. Revised transfer pricing.

2 . SA Postbank - includes an amount of R33 million for corporatisation.

4646

Balance sheet 2011/122011/12 (B) 2010/11 (F)

% R'000 R'000 R'000

Total assets up 5.5% 537,184 10,238,519 9,701,336Property, plant & equipment up 18.3% 241,459 1,558,645 1,317,186PRMA asset up 9.8% 58,830 660,425 601,595Long term investment up 5.8% 70,316 1,287,069 1,216,753Current assets up 2.5% 155,116 6,395,058 6,239,942

Inventories up 5.0% 2,467 51,807 49,340Trade & non trade receivables up 3.8% 27,033 746,834 719,801Cash & investment up 2.3% 125,616 5,596,417 5,470,800

NAV up 6.8% 156,226 2,456,739 2,300,513Trade & non trade payables up 5.2% 45,979 936,863 890,884Funds collected on behalf of third parties up 4.7% 12,538 277,049 264,511Amount owing to the shareholder up 9.0% 20,340 246,343 226,003Employment benefits up 5.8% 87,224 1,596,573 1,509,349Depositors book up 10.0% 394,415 4,338,560 3,944,146Current liabilities up 5.0% 290,785 6,149,501 5,858,716

SA Post Office Group Change

4747

5 Year Budget

2012 -2016

4848

SA Post Office GroupActuals 2009/10

Budget 2010/11

Forecast 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

Budget 2014/15

Budget 2015/16

5,579,479 5,926,634 5,719,619 5,981,994 6,388,047 6,825,282 7,250,655 7,706,747Mail revenue 3,791,293 4,062,753 3,836,199 3,982,657 4,221,616 4,474,913 4,698,659 4,933,592Logistics revenue 653,895 691,765 689,938 746,351 805,166 869,579 939,145 1,014,277Postbank revenue 143,161 152,742 182,019 197,117 220,771 247,264 276,935 310,167Financial services revenue 435,862 454,858 474,481 520,225 582,652 652,570 730,878 818,584Interest revenue 495,239 507,387 467,477 452,181 470,206 488,938 508,419 528,678Sundry revenue 60,029 57,130 69,504 83,463 87,636 92,018 96,619 101,450

5,213,079 5,570,130 5,524,554 5,753,639 6,069,527 6,404,021 6,758,331 7,133,756Staff expenses 2,613,955 2,784,690 2,810,391 2,932,722 3,079,358 3,233,326 3,394,993 3,564,742Training expenses 24,741 44,316 38,572 34,024 35,725 37,511 39,386 41,356External service providers 469,699 480,989 456,182 445,315 467,581 490,960 515,508 541,283Transport expenses 564,841 578,772 597,174 626,935 658,282 691,196 725,756 762,044Accommodation expenses 394,910 458,029 504,407 568,878 625,528 687,822 756,322 831,647Material and services 271,435 307,626 265,891 286,445 300,768 315,806 331,596 348,176Interest paid 96,837 98,863 80,890 85,389 89,659 94,142 98,849 103,791Depreciation 170,477 205,787 162,099 169,074 177,528 186,404 195,724 205,510Marketing 76,139 76,857 90,360 74,175 77,883 81,777 85,866 90,160Communication services 137,656 137,077 146,476 157,537 165,414 173,684 182,369 191,487Security services 131,894 133,606 132,479 139,642 146,624 153,955 161,653 169,736International charges 79,475 94,995 66,546 68,484 71,908 75,503 79,279 83,243Travel expenses 22,481 25,104 37,195 31,850 33,443 35,115 36,871 38,714Bank charges 29,440 29,685 25,201 24,565 25,793 27,083 28,437 29,858Audit fees 12,843 15,811 16,933 18,830 19,771 20,760 21,798 22,888Cost of insurance 49,151 52,638 51,405 48,927 51,374 53,942 56,639 59,471Provisions & write-offs 37,261 2,310 6,611 1,401 1,471 1,545 1,622 1,703Currency adjustments (1,147) 6,746 4,783 2,100 2,205 2,316 2,431 2,553Sundry expenses 30,992 36,229 30,958 37,346 39,213 41,174 43,233 45,394

Operating Profit 366,400 356,505 195,065 228,355 318,520 421,260 492,324 572,991

(73,270) (59,842) (42,603) (72,361) (191,414) (263,975) (291,030) (321,005)

Subsidy 118,065 119,428 250,235 157,895 45,614 0 0 0Taxation (78,732) (120,094) (70,070) (71,805) (56,042) (64,232) (77,317) (92,467)Non operating items (112,603) (59,175) (222,769) (158,451) (180,986) (199,743) (213,713) (228,538)

Net Profit / (Loss) 293,130 296,663 152,462 155,994 127,106 157,285 201,294 251,985

(R'000)

Revenue

Expenses

Non ops items

4949

SA Post Office Group Actuals Forecast Budget Budget Budget Budget Budget

2009/10 2010/2011 2011/12 2012/2013 2013/2014 2014/2015 2015/2016R'000 R'000 R'000 R'000 R'000 R'000 R'000

ASSETS

Non-current assets 3,124,942 3,460,480 3,842,514 4,208,263 4,584,607 5,023,290 5,452,179

Property, plant, equipment & intangible 1,120,251 1,316,271 1,557,697 1,747,170 1,918,316 2,132,694 2,316,341Investment properties 19,994 17,995 16,195 14,576 13,118 11,806 10,626Investment in subsidiaries 42,623 42,623 42,623 42,623 42,623 42,623 42,623PRMA asset 546,408 601,595 660,425 733,489 819,346 915,252 1,022,385Deferred tax asset 248,868 265,242 278,504 292,430 307,051 322,404 338,524Long term Investments 1,146,798 1,216,753 1,287,069 1,377,976 1,484,153 1,598,511 1,721,680

Current assets 6,170,321 6,319,832 6,480,399 6,931,149 7,452,788 8,033,071 8,744,009

Inventories 47,528 49,340 51,807 54,397 57,117 59,973 62,972Trade & non trade receivables 676,964 725,058 747,565 797,085 850,267 903,463 964,365Intercompany loan 0 0 0 0 0 0 0Short term investments 4,980,786 5,141,677 5,194,784 5,497,233 6,021,573 6,587,925 7,158,762Cash and cash equivalents 465,043 403,757 486,243 582,434 523,832 481,710 557,911

TOTAL ASSETS 9,295,263 9,780,311 10,322,913 11,139,413 12,037,395 13,056,361 14,196,189

EQUITY AND LIABILITIES

Capital and reserves 2,236,723 2,391,695 2,547,921 2,675,271 2,832,812 3,034,375 3,286,643

Share capital 951,140 951,140 951,140 951,140 951,140 951,140 951,140Available for sales reserve 3,435 4,645 4,877 5,121 5,377 5,646 5,928Accumulated profit 1,282,149 1,435,910 1,591,904 1,719,010 1,876,295 2,077,590 2,329,575

Non-current liabilities 1,322,843 1,542,107 1,632,280 1,748,262 1,883,474 2,029,150 2,186,100

Employment benefit obligations 1,291,520 1,509,349 1,596,573 1,709,342 1,841,051 1,982,909 2,135,697Deferred lease liability 31,323 32,758 35,707 38,920 42,423 46,241 50,403

Current liabilities 5,735,697 5,846,509 6,142,712 6,715,880 7,321,109 7,992,836 8,723,445

Trade & non trade payables 962,626 883,199 936,321 995,061 1,049,482 1,100,996 1,148,844Funds collected on behalf of third parties 275,206 259,990 270,802 303,298 321,815 360,433 403,685Amount owing to the shareholder 206,395 226,003 246,343 273,441 306,253 343,004 384,164Unearned revenue 330,230 333,847 350,686 371,663 393,900 413,779 434,666Deposits from the public 3,651,987 3,944,146 4,338,560 4,772,416 5,249,658 5,774,624 6,352,086Taxation 47,670 0 0 0 0 0 0Subsidy 261,583 199,325 0 0 0 0 0

TOTAL EQUITY AND LIABILITIES 9,295,263 9,780,311 10,322,913 11,139,413 12,037,395 13,056,361 14,196,189

5050

SA Post Office GroupActuals Forecast Budget Budget Budget Budget Budget

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/15 2015/16

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Cash (outflow) / inflow from operating activities 222,462 (32,968) 64,100 377,077 452,223 523,726 581,902

Cash received from customers 4,945,269 5,204,048 5,507,305 5,868,321 6,283,162 6,689,041 7,117,167

Cash paid to suppliers and employees (5,037,631) (5,538,317) (5,749,005) (5,848,245) (6,180,020) (6,536,186) (6,910,935). . .

Cash (utilised) / generated by operations (92,363) (334,269) (241,700) 20,075 103,142 152,855 206,232

Interest received 495,239 467,477 452,181 470,206 488,938 508,419 528,678

Interest paid (96,837) (80,890) (85,389) (89,659) (94,142) (98,849) (103,791)

(Increase) / decrease in third party funds (44,253) (15,216) 10,812 32,496 18,517 38,618 43,252

Taxation (39,324) (70,070) (71,805) (56,042) (64,232) (77,317) (92,467)

Cash (outflow) / inflow from investing activities (433,429) (428,075) (480,816) (457,908) (463,727) (524,461) (512,327)

Acquisitions of property, plant and equipment (356,651) (358,120) (410,500) (367,000) (357,550) (410,103) (389,158)

(Increase) / decrease in long term investments (76,778) (69,955) (70,316) (90,908) (106,177) (114,358) (123,169)

Increase / (decrease) of intercompany loans 0 0 0 0 0 0 0

Cash inflow / (outflow) from subsidy 336,046 268,489 157,895 45,614 0 0 0

Subsidy received 336,046 268,489 157,895 45,614 0 0 0- - - - - - -

Increase in deposits from the public 355,435 292,159 394,415 433,856 477,242 524,966 577,462


(Decrease)/ increase in cash equivalents & short term investments 480,514 99,604 135,593 398,639 465,738 524,231 647,037

Cash equivalents & short term investments at beginning of period 4,965,316 5,445,830 5,545,434 5,681,027 6,079,667 6,545,404 7,069,635

Cash equivalents & short term investments at end of period 5,445,830 5,545,434 5,681,027 6,079,667 6,545,404 7,069,635 7,716,673

5151

Post OfficeActuals 2009/10

Budget 2010/11

Forecast 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

Budget 2014/15

Budget 2015/16

4,916,568 5,226,983 5,015,695 5,227,796 5,574,729 5,947,245 6,302,731 6,683,357Mail revenue 3,791,293 4,062,753 3,836,199 3,982,657 4,221,616 4,474,913 4,698,659 4,933,592Logistics revenue 0 0 32 0 0 0 0 0Postbank revenue 143,161 152,742 182,019 197,117 220,771 247,264 276,935 310,167Financial services revenue 435,862 454,858 474,481 520,225 582,652 652,570 730,878 818,584Interest revenue 492,560 505,173 464,907 449,679 467,666 486,373 505,828 526,061Sundry revenue 53,692 51,457 58,057 78,118 82,024 86,125 90,431 94,953

4,697,700 4,979,544 4,953,057 5,148,157 5,431,918 5,732,501 6,051,013 6,388,638Staff expenses 2,446,576 2,597,723 2,629,984 2,740,693 2,877,727 3,021,614 3,172,694 3,331,329Training expenses 24,312 40,987 38,195 33,643 35,325 37,091 38,946 40,893External service providers 425,855 439,022 416,443 403,690 423,875 445,069 467,322 490,688Transport expenses 339,706 345,710 359,818 376,078 394,882 414,626 435,358 457,125Accommodation expenses 384,712 416,134 466,182 527,048 579,753 637,728 701,501 771,651Material and services 253,992 289,500 248,951 268,659 282,092 296,196 311,006 326,556Interest paid 96,213 98,860 80,104 84,581 88,810 93,250 97,913 102,808Depreciation 160,582 190,823 151,848 158,208 166,119 174,425 183,146 192,303Marketing 70,168 69,575 78,337 61,303 64,368 67,587 70,966 74,514Communication services 125,630 123,092 134,215 144,663 151,896 159,491 167,466 175,839Security services 121,102 123,701 122,728 129,404 135,875 142,668 149,802 157,292International charges 79,475 94,995 66,546 68,484 71,908 75,503 79,279 83,243Travel expenses 21,153 23,877 35,196 29,751 31,238 32,800 34,440 36,162Bank charges 31,121 28,675 24,728 24,067 25,271 26,534 27,861 29,254Audit fees 13,186 9,914 13,240 14,952 15,699 16,484 17,309 18,174Cost of insurance 44,013 45,650 47,598 44,928 47,174 49,533 52,010 54,610Provisions & write-offs 35,162 2,310 5,140 595 625 656 689 723Currency adjustments (1,146) 6,746 4,783 2,100 2,205 2,316 2,431 2,553Sundry expenses 25,888 32,251 29,020 35,310 37,075 38,929 40,875 42,919


29,335 56,253 78,614 55,496 (56,826) (122,328) (141,944) (164,079)

Subsidy 118,065 119,428 250,235 157,895 45,614 0 0 0Taxation (75,930) (118,103) (68,383) (69,631) (53,421) (61,151) (73,724) (88,310)Non operating items (121,974) (60,000) (222,981) (158,451) (180,986) (199,743) (213,713) (228,538)Support costs recovery 66,964 74,991 68,739 72,087 75,691 79,476 83,450 87,622Transfer pricing 42,210 39,937 51,004 53,596 56,276 59,090 62,044 65,146

Net Profit / (Loss) 248,204 303,691 141,252 135,134 85,985 92,415 109,775 130,639

(R'000)

Revenue

Expenses

Non ops items

5252

Post Office Actuals Forecast Budget Budget Budget Budget Budget

2009/10 2010/2011 2011/12 2012/2013 2013/2014 2014/2015 2015/2016R'000 R'000 R'000 R'000 R'000 R'000 R'000

ASSETS

Non-current assets 3,016,233 3,353,704 3,735,897 4,105,837 4,486,382 4,927,301 5,359,987

Property, plant, equipment & intangible 1,097,002 1,295,154 1,536,945 1,730,827 1,906,402 2,123,256 2,310,953Investment properties 19,994 17,995 16,195 14,576 13,118 11,806 10,626Investment in subsidiaries 42,603 42,603 42,603 42,603 42,603 42,603 42,603Intercompany loans 220,678 220,678 220,678 220,678 220,678 220,678 220,678Impairment of intercompany loans (302,168) (302,168) (302,168) (302,168) (302,168) (302,168) (302,168)PRMA asset 546,408 601,595 660,425 733,489 819,346 915,252 1,022,385Deferred tax asset 244,918 261,095 274,150 287,857 302,250 317,362 333,231Long term Investments 1,146,798 1,216,753 1,287,069 1,377,976 1,484,153 1,598,511 1,721,680

Current assets 6,050,763 6,144,817 6,255,558 6,638,320 7,074,516 7,549,813 8,130,424

Inventories 47,284 49,084 51,538 54,115 56,821 59,662 62,645Trade & non trade receivables 603,839 616,013 642,063 684,672 730,424 774,083 820,831Intercompany loan 0 0 0 0 0 0 0Short term investments 4,980,786 5,141,677 5,194,784 5,497,233 6,021,573 6,487,925 6,958,762Cash and cash equivalents 418,854 338,042 367,173 402,300 265,699 228,142 288,186

TOTAL ASSETS 9,066,996 9,498,521 9,991,454 10,744,158 11,560,898 12,477,114 13,490,411


Capital and reserves 2,213,124 2,355,585 2,490,952 2,577,181 2,669,852 2,779,896 2,910,817

Share capital 950,940 950,940 950,940 950,940 950,940 950,940 950,940Available for sales reserve 3,435 4,645 4,877 5,121 5,377 5,646 5,928Accumulated profit 1,258,749 1,400,001 1,535,135 1,621,120 1,713,535 1,823,310 1,953,949

Non-current liabilities 1,309,348 1,522,014 1,610,965 1,725,402 1,858,824 2,002,569 2,157,437

Intercompany loan 0 0 0 0 0 0 0Employment benefit obligations 1,279,289 1,491,135 1,577,307 1,688,715 1,818,835 1,958,981 2,109,925Deferred lease liability 30,059 30,879 33,658 36,688 39,990 43,589 47,512

Current liabilities 5,544,524 5,620,921 5,889,537 6,441,575 7,032,221 7,694,648 8,422,157

Trade & non trade payables 791,824 678,501 705,227 744,098 785,274 828,906 875,156Funds collected on behalf of third parties 275,206 259,990 270,802 303,298 321,815 360,433 403,685Amount owing to the shareholder 206,395 226,003 246,343 273,441 306,253 343,004 384,164Unearned revenue 309,859 312,957 328,605 348,321 369,221 387,682 407,066Deposits from the public 3,651,987 3,944,146 4,338,560 4,772,416 5,249,658 5,774,624 6,352,086Taxation 47,670 0 0 0 0 0 0Subsidy 261,583 199,325 0 0 0 0 0

TOTAL EQUITY AND LIABILITIES 9,066,996 9,498,521 9,991,454 10,744,158 11,560,898 12,477,114 13,490,411

5353

Post OfficeActuals Forecast Budget Budget Budget Budget Budget

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/15 2015/16

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Cash (outflow) / inflow from operating activities 220,188 (60,613) 243 309,014 366,674 418,188 456,588

Cash received from customers 4,306,729 4,538,613 4,752,067 5,064,453 5,415,120 5,753,243 6,110,548

Cash paid to suppliers and employees (4,402,114) (4,900,430) (5,058,103) (5,113,371) (5,398,936) (5,707,864) (6,032,155). . .

Cash (utilised) / generated by operations (95,385) (361,816) (306,036) (48,917) 16,184 45,379 78,393


Interest paid (96,213) (80,104) (84,581) (88,810) (93,250) (97,913) (102,808)

(Increase) / decrease in third party funds (44,253) (15,216) 10,812 32,496 18,517 38,618 43,252

Taxation (36,522) (68,383) (69,631) (53,421) (61,151) (73,724) (88,310)



(Increase) / decrease in long term investments (76,778) (69,955) (70,316) (90,908) (106,177) (114,358) (123,169)

Increase / (decrease) of intercompany loans 0 0 0 0 0 0 0

Cash inflow / (outflow) from subsidy 336,046 268,489 157,895 45,614 0 0 0

Subsidy received 336,046 268,489 157,895 45,614 0 0 0- - - - - - -



(Decrease)/ increase in cash equivalents & short term investments 479,205 80,079 82,237 337,576 387,739 428,796 530,881

Cash equivalents & short term investments at beginning of period 4,920,435 5,399,640 5,479,720 5,561,957 5,899,533 6,287,272 6,716,067

Cash equivalents & short term investments at end of period 5,399,640 5,479,720 5,561,957 5,899,533 6,287,272 6,716,067 7,246,948

5454

LogisticsActuals 2009/10

Budget 2010/11

Forecast 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

Budget 2014/15

Budget 2015/16

662,910 699,652 703,924 754,198 813,318 878,037 947,924 1,023,391Mail revenue 0 0 0 0 0 0 0 0Logistics revenue 653,895 691,765 689,907 746,351 805,166 869,579 939,145 1,014,277Postbank revenue 0 0 0 0 0 0 0 0Financial services revenue 0 0 0 0 0 0 0 0Interest revenue 2,679 2,214 2,570 2,502 2,539 2,565 2,591 2,616Sundry revenue 6,336 5,673 11,447 5,345 5,613 5,893 6,188 6,497

515,379 590,585 571,497 605,481 637,610 671,520 707,319 745,118Staff expenses 167,378 186,967 180,407 192,030 201,631 211,713 222,298 233,413Training expenses 429 3,328 377 381 400 420 441 463External service providers 43,844 41,967 39,739 41,625 43,706 45,891 48,186 50,595Transport expenses 225,135 233,062 237,356 250,857 263,400 276,570 290,398 304,918Accommodation expenses 10,198 41,894 38,225 41,830 45,776 50,094 54,822 59,996Material and services 17,443 18,126 16,940 17,787 18,676 19,610 20,590 21,620Interest paid 624 3 785 809 849 891 936 983Depreciation 9,895 14,964 10,251 10,866 11,409 11,979 12,578 13,207Marketing 5,971 7,282 12,023 12,871 13,515 14,191 14,900 15,645Communication services 12,026 13,985 12,261 12,874 13,517 14,193 14,903 15,648Security services 10,792 9,905 9,750 10,238 10,749 11,287 11,851 12,444International charges 0 0 0 0 0 0 0 0Travel expenses 1,328 1,226 1,999 2,100 2,204 2,315 2,430 2,552Bank charges (1,681) 1,010 473 497 522 548 576 605Audit fees (343) 5,896 3,693 3,878 4,072 4,275 4,489 4,714Cost of insurance 5,138 6,989 3,808 3,999 4,199 4,409 4,630 4,861Provisions & write-offs 2,100 0 1,471 806 846 889 933 980Currency adjustments (1) 0 0 0 0 0 0 0Sundry expenses 5,104 3,978 1,938 2,036 2,138 2,245 2,357 2,475


(110,050) (116,094) (121,217) (127,857) (134,588) (141,647) (149,086) (156,926)

Subsidy 0 0 0 0 0 0 0 0Taxation (2,802) (1,991) (1,687) (2,174) (2,621) (3,081) (3,592) (4,158)Non operating items 1,926 825 212 0 0 0 0 0Support costs recovery (66,964) (74,991) (68,739) (72,087) (75,691) (79,476) (83,450) (87,622)Transfer pricing (42,210) (39,937) (51,004) (53,596) (56,276) (59,090) (62,044) (65,146)

Net Profit / (Loss) 37,482 (7,028) 11,210 20,860 41,121 64,870 91,519 121,346

(R'000)

Revenue

Expenses

Non ops items

5555

Logistics Actuals Forecast Budget Budget Budget Budget Budget

2009/10 2010/2011 2011/12 2012/2013 2013/2014 2014/2015 2015/2016R'000 R'000 R'000 R'000 R'000 R'000 R'000

ASSETS

Non-current assets 27,219 26,963 478,564 476,221 473,960 473,761 472,103

Property, plant, equipment & intangible 23,249 22,795 24,189 21,628 19,139 18,700 16,790Investment properties 0 0 0 0 0 0 0Investment in subsidiaries 20 20 20 20 20 20 20Intercompany loans 0 0 0 0 0 0 0Impairment of intercompany loans 0 0 0 0 0 0 0PRMA asset 0 0 0 0 0 0 0Deferred tax asset 3,950 4,148 4,355 4,573 4,801 5,041 5,293Investment in subsidiaries (SSC) 0 0 450,000 450,000 450,000 450,000 450,000

Current assets 119,558 160,350 153,405 135,911 141,906 168,227 178,203

Inventories 244 256 269 282 297Trade & non trade receivables 73,125 97,136 102,255 108,932 116,035 124,933 134,880Intercompany loan 0 0 0 0 0 0 0Short term investments 0 0 0 0 0 0 0Cash and cash equivalents 46,189 62,958 50,881 26,697 25,574 43,294 43,323

TOTAL ASSETS 146,777 187,313 631,969 612,132 615,866 641,988 650,306


Capital and reserves (304,472) (293,262) (272,401) (231,281) (166,411) (74,892) 46,455

Share capital 200 200 200 200 200 200 200Available for sales reserve 0 0 0 0 0 0 0Accumulated profit (304,672) (293,462) (272,601) (231,481) (166,611) (75,092) 46,255

Non-current liabilities 260,076 267,973 269,195 270,741 272,531 273,588 275,591

Intercompany loan 246,581 247,880 247,880 247,880 247,880 247,880 247,880Employment benefit obligations 12,231 18,214 19,266 20,627 22,217 23,928 25,772Deferred lease liability 1,264 1,879 2,048 2,233 2,434 1,779 1,939

Current liabilities 191,173 212,602 635,175 572,672 509,746 443,292 328,259

Trade & non trade payables 170,801 191,712 178,094 154,330 145,067 148,359 145,932Funds collected on behalf of third parties 0 0 0 0 0 0 0Amount owing to the shareholder 0 0 0 0 0 0 0Unearned revenue 20,372 20,890 22,081 23,342 24,679 29,933 32,328Deposits from the public 0 0 0 0 0 0 0Taxation 0 0 0 0 0 0 0Holding company loan (SSC) 0 0 435,000 395,000 340,000 265,000 150,000

TOTAL EQUITY AND LIABILITIES 146,777 187,313 631,969 612,132 615,866 641,988 650,306

5656

LogisticsActuals Forecast Budget Budget Budget Budget Budget

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/15 2015/16

R'000 R'000 R'000 R'000 R'000 R'000 R'000

Cash (outflow) / inflow from operating activities 4,677 24,889 13,423 22,816 61,427 102,823 124,187

Cash received from customers 324,840 677,343 746,577 804,101 868,369 936,435 1,010,828

Cash paid to suppliers and employees (318,802) (652,551) (732,674) (780,355) (805,534) (831,674) (884,117). . .

Cash (utilised) / generated by operations 6,038 24,791 13,903 23,746 62,835 104,760 126,711


Interest paid (624) (785) (809) (849) (891) (936) (983)

(Increase) / decrease in third party funds 0 0 0 0 0 0 0

Taxation (3,734) (1,687) (2,174) (2,621) (3,081) -3,592,222 -4,157,624



(Increase) / decrease in long term investments

Increase / (decrease) of intercompany loans 0 0 (15,000) (40,000) (55,000) (75,000) (115,000)

Cash inflow / (outflow) from subsidy 0 0 0 0 0

Subsidy received 0 0 0 0 0 0 0- - - - - - -

Increase in deposits from the public

Increase in deposits from the public 0 0 0 0 0 0 0

(Decrease)/ increase in cash equivalents & short term investments 1,309 16,769 (12,077) (24,184) (1,123) 17,720 29

Cash equivalents & short term investments at beginning of period 44,880 46,189 62,958 50,881 26,697 25,574 43,294

Cash equivalents & short term investments at end of period 46,189 62,958 50,881 26,697 25,574 43,294 43,323

5757

PostbankActuals 2009/10

Budget 2010/11

Forecast 2010/11

Budget 2011/12

Budget 2012/13

Budget 2013/14

Budget 2014/15

Budget 2015/16

567,634 625,466 664,092 666,665 717,570 773,420 834,762 902,205Mail revenue 0 0 0 0 0 0 0 0Logistics revenue 0 0 0 0 0 0 0 0Postbank revenue 142,909 152,742 181,897 197,117 220,771 247,264 276,935 310,167Financial services revenue 59,028 78,107 118,421 105,840 118,540 132,765 148,697 166,541Interest revenue 365,009 393,877 363,614 363,502 378,042 393,164 408,891 425,246Sundry revenue 688 740 160 206 216 227 239 250

163,190 154,671 143,965 165,196 173,492 182,208 191,363 200,980Staff expenses 28,936 33,701 31,556 40,550 42,578 44,707 46,942 49,289Training expenses 1,229 1,204 1,158 1,390 1,460 1,532 1,609 1,690External service providers 14,807 11,138 14,626 29,400 30,870 32,414 34,034 35,736Transport expenses 1,499 926 7,048 1,341 1,408 1,478 1,552 1,630Accommodation expenses 631 203 747 738 812 893 982 1,081Material and services 7,770 7,728 2,900 1,852 1,944 2,041 2,143 2,251Interest paid 56,856 63,402 49,158 53,314 55,979 58,778 61,717 64,803Depreciation 7,829 5,984 7,942 9,322 9,788 10,278 10,791 11,331Marketing 16,638 25,666 20,892 17,966 18,865 19,808 20,798 21,838Communication services 3,705 3,383 3,284 3,393 3,563 3,741 3,928 4,125Security services 7,416 0 38 39 41 43 45 47International charges 0 0 0 387 406 427 448 470Travel expenses 1,299 760 1,728 1,569 1,647 1,729 1,816 1,907Bank charges 299 319 1,453 232 244 256 269 282Audit fees 0 0 0 1,186 1,245 1,308 1,373 1,442Cost of insurance 125 109 708 0 0 0 0 0Provisions & write-offs 14,098 0 591 595 625 656 689 723Currency adjustments (6) 0 0 0 0 0 0 0Sundry expenses 58 149 136 1,922 2,018 2,119 2,224 2,336


(213,154) (231,341) (238,533) (250,460) (262,983) (276,132) (289,938) (304,435)

Support costs recovery (53,071) (57,036) (57,246) (60,108) (63,114) (66,269) (69,583) (73,062)Transfer pricing (160,083) (174,305) (181,287) (190,351) (199,869) (209,862) (220,355) (231,373)

Net Profit / (Loss) 191,290 239,454 281,595 251,010 281,095 315,081 353,461 396,790

(R'000)

Revenue

Expenses

Non ops items

5858

Financial ratios

5959

Financial ratios (R’000)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

NAV 873,943 1,233,119 1,596,747 1,962,824 2,236,723 2,391,695 2,547,921

Change % 105% 41% 29% 23% 14% 7% 7%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

6060

Financial ratios

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Quick ratio 1.0 1.0 1.1 1.2 1.2 1.1 1.0

Current ratio 1.0 1.1 1.1 1.2 1.2 1.1 1.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

6161

Financial ratios

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Solvency ratio 15.1% 17.6% 20.8% 22.6% 24.1% 24.5% 24.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

6262

Financial ratios

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Asset turnover 0.80 0.72 0.70 0.66 0.60 0.58 0.58

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

6363

Financial ratios

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

ROA 8% 5% 5% 4% 3% 2% 2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

6464

Financial ratios

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

ROE 54% 28% 24% 19% 13% 6% 6%

0%

10%

20%

30%

40%

50%

60%

6565

Financial ratios ( R’ millions)

2005/06 2006/07 2007/08 2008/09 2009/10Forecast

2011Budget 2012

Total assets 5,792 6,996 7,691 8,691 9,295 9,780 10,323

0

2,000

4,000

6,000

8,000

10,000

12,000

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