Presentation by the Chairperson of the SABC

1. Presentation by the Chairperson of the SABC Sonwabo Eddie Funde SABC annual results presentation to Parliament 31 October 2006

2. The SABC Board’s goals • Promote democracy, non-racism, nation-building and empowerment through innovative programming that is informative, entertaining and educative in all official languages • Align SABC with Broadcasting Charter, SABC objectives and Editorial Policies • Create financially sound company • Revitalise the company

3. The SABC Board’s goals conti.. • Ensure full statutory and regulatory compliance • Ensure employment equity and BEE • Create an SABC that enjoys support and respect • Ensure compelling, professional and authoritative news and current affairs

4. The SABC Board’s goals • Ensure SABC plays a role in supporting NEPAD and the African Renaissance • Put technology platform and other infrastructure in place • Ensure interesting, dynamic and educative programming

5. The SABC Board’s goals • Enable innovative use of technology • Monitor alignment with Broadcasting Act and editorial policies • Authorise policy documents

6. Meeting corporate goals • Management has made excellent progress in implementing corporate goals • This year’s results show solid achievements in: • Promoting democracy • Promoting national unity • Ensuring sustainable financial viability • Improved governance • Regulatory discipline • Gaining respect and support of its stakeholders • Opening up services to remote areas and disadvantaged communities

7. Engaging with stakeholders • SABC is closer than ever before to its listeners and viewers, policymakers, legislators and business • Board continued to prioritised stakeholder engagement this year to ensure an SABC that is sensitive to the needs of the people of South Africa • Visits to provincial capitals, engagements with labour and business, roundtables with film producers

8. Engaging with stakeholders • Engagements have been invaluable: • Highlighted SABC’s role in nation-building • Identified gaps in shaping understanding • Helped us understand the challenges

9. Building a strong organisation • Significant progress in improving corporate governance • Appointment of new GCEO • Strengthening the Executive and gender equity – 6 women executives • Attendance and participation in board meetings and subcommittees continues to improve • Board secretariat strengthened • Stronger corporate governance controls

10. Increasing universal access • Critical area of interest for the Board • Heartening to note progress: • Broadcasting in all 11 official languages, including !Xu and Khwe • Notable increase in programming for people with disabilities

11. Increasing universal access • Significant growth in SABC footprint in last five years • Ikwekwezi from 30% to 81% • Ligwalagwala from 34% to 68% • Ukhozi FM from 68% to 87% • SABC1 from 82% to 89% • SABC2 from 85% to 91% • SABC3 from 71% to 77%

12. Showing strong financial growth • Revenue increased to R3.9-billion • After-tax profit of R382-million • Growth in all major financial areas • Matched by increased expenditure in key programming areas: • Local content • News and current affairs in indigenous languages

13. Meeting our public service mandate • Exceptionally strong performance on public service mandate • Public Broadcaster that: • Speaks to everyone as a citizen • Encourages access and participation in public life • Develops knowledge, broadens horizons and enables people to better understand themselves

14. Meeting our public service mandate • Continue to shape public discourse around role of public broadcaster, and funding models • International conference in March on ‘Funding the future’ • ‘Media and society’ conference in partnership with SANEF

15. Making advances in content production • New licence conditions provide clear benchmark for programming and content • Adapted swiftly to new conditions since introduction in March • Editorial policies bedded down • High-quality coverage of local government elections • Appreciate efforts of partners in ensuring compliance and quality

16. Looking back, looking forward • Board has made significant progress in achieving its goals: • Particularly on ensuring SABC contributes to nation-building, deepening democracy and ensuring an empowered citizenry

17. Looking back, looking forward • Going forward: • Continue to consolidate the public service mandate • Increase provision of compelling, informative, educative and entertaining programming • Even better performance in financial and governance targets

18. Looking back, looking forward • All eyes on 2010: • Guarantee world-class coverage • Ensure the world is as captivated as South Africa by this event • Put up a show that will make the African continent and its Diaspora proud

19. Thank You

20. Presentation by the GCEO of the SABC Advocate Dali Mpofu SABC Annual Report: Presentation to Parliament 31 October 2006

21. Introduction • One year down the line: • Significant advancement on all fronts: • Strong delivery on public service mandate • Solid corporate governance • On track with delivery against Key Performance Indicators

22. Introduction cont… • Audience growth of 97% • Exceptional revenue growth • Solid progress with technology plan

23. New Corporate Strategy • New corporate strategy: Total Citizen Empowerment (The Green Revolution) • New organisational structure, with seven pillars: • People • Operations • Technology • Funding • News and current affairs • Governance • Group CEO support

24. New Corporate Strategy Values “the glue that binds the organisation” • Conversations & Partnerships • Restoration of Human Dignity • Building a Common Future

25. New Corporate Strategy • New strategy shifts from inward-oriented, self-assessing stance, to a broadcasting culture that is at all times citizen-focused, and translates into changes in: • Service delivery • internal operations • commissioning and content acquisition strategies • human resource deployments • resource allocations

26. New Corporate Strategy Reasons for Change • SABC plays important role in promoting democracy • Nation Building • Promoting social cohesion • Reflecting cultural and regional diversity

27. The year in review ‘The SABC has evolved to being a public broadcaster whose mandate and primary focus is to ensure that every citizen is empowered through our programming’

28. Putting people first • Massive drive to put people at centre of operations • Raised the bar on employment and gender equity, and redressing imbalances of the past • Impact • Renewed energy • Increased stakeholder relations • Visible improvement in staff morale

29. Putting people first • Challenges • Fill key vacancies • Improve SABC’s appeal as employer of choice • Widespread training and skills development challenges • Need for mentoring and succession planning • Ensure inclusion of people with disabilities

30. News and Current Affairs • Delivering radio and television news and current affairs in 13 languages (including Xun and Khwe) • Research shows that SABC News is the primary source of news • 13 editorial offices, over 900 permanent staff, four foreign bureaus • 1586 news bulletins and 190 current affairs programmes broadcast on radio per week • 130 bulletins and 5 current affairs shows on television per week

31. Radio Platforms • Public service radio • Average daily listener rates stable • Radio time spent listening improved • Strong delivery on local content • Increased footprint for PBS Radio Stations beyond 80% coverage

32. Radio Platforms • Growth plans based on: • Improved programming and local language content • Afro centric approach • Integration with television, where possible • Ongoing training and exposure for practitioners

33. Radio Platforms • Commercial Radio • Good growth in average daily listener rates • Commercial services attracting young audiences: ages 16-35 • Urban dominance • Impressive Revenue Growth

34. Television Platforms • SABC 1, SA’s number one television station with 15.2 million daily audience • SABC 2, primary family television station broadcasting in 11 official languages • SABC 3, Commercial Channel with 15% market share. Posted positive audience growth.

35. Content Enterprises • Content hub: Continues to grow local content • SABC Sport: broadcast sports of national interest, development sports and international events • Education: fulfills education mandate • Other units address international content acquisition, business development and acquisition, operations, finance and human capital

36. Content Enterprises • Key challenges • 2010 Project, to oversee investments in technology and human capital • Multi-channel project, to ensure world-class content development • Industry development initiative to assist local production industry

37. SABC Network: Local Content FY 05/06 2003 local content regulations: Overall local content 55% for PBS & 35% for PCBS Full Day Prime Time 78.5 72.2 64.7 63.0 46.1 41.8 Source: Broadcast Schedules 2005 (Apr 05-Mar 06) SABC NETWORK COMPLIANT WITH LOCAL CONTENT SABC television has delivered above the local content requirements as per ICASA regulations

38. Mandate Performance Review: Local Content (ownership) In summary, out of the 114 companies commissioned to date, 55% were black owned – bringing in new voices, new stories – reflecting the diversity of South Africa

39. Key Success Factors: Public Broadcasting As a Public Broadcaster we believe that our success is based on the following factors: • Pushing boundaries and addressing issues that are normally ignored by politicians, churches, parents, and schools; • Provoking dialogue – getting the nation to talk to itself on critical issues

40. Key Success Factors: Public Broadcasting cont… • Carrying real stories told by real people – stories that are from the heart, authentic, and about our people, their hunger to live and to make a difference; about hope and renewal; • Ensuring that our stories are not about selling our stations and channels, but about changing attitudes, inspiring people, and transforming norms;

41. Key Success Factors: Public Broadcasting cont… • Offering programme line-ups for every age group ranging from documentaries and drama to entertainment and actuality; and • Being governed by regulations and policies that protect the rights of individuals, women and children, and ensuring that in news and other programmes we preserve the dignity, privacy and integrity of all concerned.

42. Technology • Technology plan being actively implemented, with four key components: • Broadcast technology solutions • Information technology solutions • Facilities development and management • Human capital development

43. Technology • Total cost: R1.3-billion. R400-million already secured from government, with total of R700-m long-term commitment • Benefits already being felt, and will increase as we approach 2010 • Challenges remain: • Capacity • Skills

44. Finance and FundingSignificant improvement on last year’s historic performance – profit of R383-million almost doubled from R194-million in previous year • Total revenue grew by 17% • Very pleasing growth in PBS radio • Solid growth maintained in television • Audience service revenue grew by 30% to R739-million • Funding breakdown includes: • TV licences: 19% of funding mix • Non-commercial funding: 25%

45. Transformation and Social Impact • BEE and SMMEs • Remarkable increase of services procured from black-owned business and SMMEs • Capital expenditure programme will increase this by R250-million • Siyanqoba • Launched to promote concept of a winning nation • Huge success – provincial visits, widespread coverage • Will continue in various guises until 2010, extended to other codes including cricket

46. Transformation and Social Impact • African Renaissance and NEPAD • Significant programming focus on and off-screen • Plans for 24-hour news channel for Africa at advanced stage • Increase in domestic news coverage of Africa • Content commissioning committed to telling the African story

47. Transformation and Social Impact • Universal access • Additional 5-million people received SABC services in last five years • Increase in transmitters and coverage • Alignment with ISRDP

48. Celebrating Our People • A host of awards and accolades • SABC1: Apex Awards • SABC Africa: Harambe International, Africa Economic Development Awards, African Business Achiever Awards • Religion: Good Vibrations nominated for Best Documentary at ‘God on Film’ Festival • Audience services: five Loeries for advertisements, plus Best Advert from Creative Directors’ Circle

49. Celebrating Our People • A host of awards and accolades • Commercial Enterprises: Awards for Radio Sales, plus Supplier of the Year (SABC Sales). • Education: World Media Festivals’ gold award, plus Rose d’Or Social Awareness Award • Vignette consolidated solution award UK 2005. SABC new media technology team • Magic Cellar won two bronze Telly Awards in the "Children" and "Animation" categories and was chosen as winner among 12 000 entries that were received.

50. Going Forward • No room for complacency • Identify and explore new opportunities • Increase services for marginalised sections of society • Implement economic and human development approach to content creation, ensuring development of South African themes, issues and stories • Expand and improve involvement of black-owned business and SMMEs • Gear up for 2010!