CIPC Annual Report 2013/4 a nd 1 st Quarter 2014/5 financial and non-financial performance

1. CIPC Annual Report 2013/4 and 1st Quarter 2014/5 financial and non-financial performance A Ludin 19 September 2014

2. Introduction • Sustained and rapid transformation since 2011; • Building an aeroplane while flying it • maintaining and improving service delivery while building a new institution;

3. Key achievements for 2013/4 • New structure and policies (July–August 2013) • Increased posts from 606 to 640 • New remuneration framework • New service delivery model and channels • FNB integrated company registration and account opening (June 2013) • Self-service centre and self-service terminals (January 2014) • ICT stabilisation • New annual return system (August 2013)

4. Companies, CCs and Co-ops

5. Patents, Designs and Trade Marks Applications

6. E-filing uptake and turnaround

7. Business Rescue

8. Investigation and enforcement • 156 compliance notices issued • Failure to have accurate and complete accounting records; • Annual financial statements not prepared within 6 months of financial year end • AGMs not held within 15 months of previous AGM and no time extension • Investigations: • Auditor conduct • Unauthorised director or member changes • Governance in State-Owned Enterprises

9. Self-service centre • Self-service terminals offer huge opportunity for service delivery and will be expanded across the country

10. SST services • Customer registration; • Password reset; • Company registration; • Annual returns; • Address changes; • Financial year end changes; • Disclosure certificates; • Director changes (coming soon)

11. SST company registration Customer Registration Registration certificate Company registration No paper required!

12. Programme1: Business Regulation and Reputation

13. Programme 2: Innovation and Creativity Promotion

14. Programme 3: Service Delivery and Access

15. Summary of financial performance • 2013/2014 Actual income – R 455, 611, 000 (R293, 300, 000 – 52% was derived from Annual Returns. • 2013/2014 Actual expenditure – R 309, 868, 000 • 2013/2014 Q1 – Surplus – R145, 743, 000

16. 2014/5 Q1 Performance • 23 performance targets set • 2014/2015 Annual target for overall performance = 80% • Quarter 1 target for overall performance = 70% (to allow the organization to strengthen its implementation efforts over time) • Quarter 1 actual performance = 77% (18 targets met)

17. Programme1: Business Regulation and Reputation (Strategic Objective 1.1)

18. Programme 1: Business Regulation and Reputation (Strategic Objective 1.2)

19. Programme 2: Innovation and Creativity Promotion (Strategic Objective 2.1)

20. Programme 3: Service Delivery and Access (Strategic Objective 3.1)

21. Programme 3: Service Delivery and Access (Strategic Objective 3.2 & 3.3)

22. Targets not met

23. Electronic transactions growth

24. Business Rescue

25. Financial Performance

26. Overall operating results

27. Revenue Report

29. ANNUAL RETURN FEES AND PENALTIES

30. Expenditure Report

31. Analysis of financial performance: Expenditure

33. Companies and Intellectual Property Commission Statement of Financial Position As at June 30, 2014 Note Jun-2014 Jun-2013 R 000 R 000 Assets Non-current assets 1 42,438 20,359 Property, plant and equipment 31,776 12,349 Intangible assets 10,662 8,010 Current assets 1,411,654 1,269,499 Inventories - 649 2 Receivables from exchange transactions 674 237 3 Other Receivables 3 652 1,119 Cash and cash equivalents 1,410,328 1,267,922 4 Non-current assets held for sale - 45 Total assets 1,454,092 1,289,858 Equity and liabilities Equity 1,345,155 1,194,636 Accumulated Surplus 1,345,155 1,194,636 Current Liabilities 108,937 95,222 Provisions 24,647 20,742 5 Payables from exchange transactions 6,299 10,514 6 Trade and other payables from non-exchange transactions 77,991 63,966 6 Total Equity and Liabilities 1,454,092 1,289,858 Statement of financial position

34. Companies and Intellectual Property Commission Statement of Cash Flows for the year ended June 30, 2014 Jun-2014 Jun-2013 R 000 R 000 Cash flows from operating activities 127,700 110,557 Revenue from exchange transactions 33,056 50,071 Revenue from non-exchange transactions 74,694 44,677 Interest income 19,950 15,809 Payments (101,277) (82,955) Employee cost 46,528 45,606 Suppliers (54,749) (37,349) Net cash flows from operating activities 26,424 27,602 Cash flows from investing activities (2,901) (154) Acquisition of property, plant and equipment (2,840) (25) Proceeds of diposal of property,plant - 90 Acquisition of Intangible assets (61) (219) Cash flows from financing activities - - Net increase/(decrease) in cash and cash equivalents 23,523 27,448 Cash and cash equivalents at beginning of period 1,386,805 1,240,474 Cash and cash equivalents at end of period 1,410,328 1,267,922 Statement of Cash Flows

35. Going forward • The focus for the rest of the year will be on: • Roll out of SSTs • Redesign of website (query resolution system which should reduce the number of calls); • Accessibility and ease of transacting through modern, effective channels to improve the relevance and value to Customers and Stakeholders; • Enforcement and compliance efforts demonstrating improved compliance. • Meeting our targets

36. A paperless back office • Picture 

37. Query Resolution Strategy • proper training of call takers; • conducting a time and motion study regarding staff workload; • addressing the ICT and telephony challenges; • new telephony system (including a work force management system to manage staff performance) and CIPC ownership of such telephony system.

38. New website

39. New e-services

40. JSE service • New dedicated e-mail service for listed companies and their subsidiaries: • Share capital changes • Name changes • Other MOI amendments • Dedicated office at the JSE in near future

41. In conclusion • Foundations for new model of public service delivery established • Benchmarks set for world class service • Progressive change with tangible results