SITA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE 13 NOVEMBER 2002

1. SITA ANNUAL REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE 13 NOVEMBER 2002

2. SITA Overview The Year Under Review Current Year Forecast Conclusion THE PRESENTATION…

3. 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 OVERVIEW

4. 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 OVERVIEW cont.

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

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

7. 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 C

8. 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 D

9. 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 D

10. 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 E

11. 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 HUMAN CAPITAL

12. TREASURY AND FINANCE

13. For the year ended 31 March 2002… SITA has increased revenue 34% to R1,36-billion from R1,02-billion in the previous year REVENUE

14. REVENUE R million

15. SITA improve net loss after tax with 61% Down from R43,4-million in 2001 to R16,9-million for 2002 NETT LOSS AFTER TAX

16. NETT LOSS AFTER TAX R million

17. SITA decrease operating loss with +50% from R72,6-million to R30,5-million OPERATIONAL LOSS

18. OPERATIONAL LOSS R million

19. ACTUAL REVENUE 2000/2001/2002BUDGETED REVENUE 2003 R million

20. OPERATING PROFIT (LOSS) Budget R million

21. CASH AND CASH EQUIVALENTS R million Cash and Bank Rm

22. ANNUAL OPERATING EXPENSES R million

23. Management will concentrate on Implementing the goals of the Act thus achieving : Lowering of costs Increasing productivity Providing choice and convenience to citizens CURRENT YEAR FORECAST

24. SITA Civilian will strive to… Deliver effective and efficient publicservices Building competitiveness Creating value for clients Implement business opportunities with local authorities Establishment of a command centre SITA C

25. 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 E

26. 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 MANAGEMENT

27. IN SUMMARY

28. 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

29. Thank you