IMC Quarterly Report - Q2 2011

1. International Marketing Council – Q1 Report August 2011

2. Contents • Executive Summary • Overview – Strategic Plan 2011/14Plan • Mandate • Outcomes and strategies • Strategic approach • Key Markets • Key Focus Areas 2011/12 • Quarterly Report – April – June 2011 • Major Trends • Performance Summary • Financial Performance • Changes to Business plans • Key Projects for Q2

3. The IMC’s mandate is derived from the National Mandate National priorities GDP growth, job creation, poverty alleviation, social cohesion, National Vision for South Africa – Vision 2030 Desired impact Increased international competitiveness Improved international reputation Increasedbrand equity Vision South Africa acknowledged as a Top 20 Nation Brand and a Top 30 Nationin the Global Competitive Index by 2020 International mandate To build South Africa’s Nation Brand reputation in order to improve South Africa’s global competitiveness Domestic mandate Build Pride & Patriotism amongst South Africans and contribute to social cohesion and nation brand ambassadorship

4. Desired outcomes and strategies to achieve them IMC’s MANDATE relative to South Africa’s needs... To build South Africa’s Nation Brand reputationin order to improve South Africa’s global competitiveness It aims to fulfil this mandate by achieving the following OUTCOMES 1. Brand Alignment by stakeholders 2. Increased Pride and Patriotism amongst South Africans 3. Positively changed percep-tions about South Africa amongst target audiences 4. Articulated and contextualised South African policy 5. Increased economies of scale and scope 6. A sustainable organisation … by undertaking the following6 STRATEGIES 1. Brand strategy development and management 2. Reputation management 3. Brand knowledge management and performance management 4. Stakeholder and partner alignment and integration 5. Organisational development 6. Prudent financial management and control

5. Integrated Approach to Achieving Competitive Identity Nation Brand Image Management (Country Branding) ( People Trade/Investment/ Export Promotion South Africa’s Competitive Identity Culture & Heritage (inc Sports) Tourism Promotion (Destination Branding) Diplomacy Economic/Public

6. Defining our Key Markets

7. Key focus areas and initiatives 2011/12 Domestic Strategic projects International • Brand repositioning • Alignment and training • Leverage key events • Active citizenship campaign [movement for good] • Thought leadership platforms • Business roundtables • National awards/orders • SKA • COP 17 • WEF Davos • WEF Africa • Rugby World Cup • 123rd IOC Meeting • All Africa Games • Brand Africa Forum • International reputation management • BRICS market programme • Support state visits and ITIs • Leverage key events and platforms • Media programmes/tours • Business roundtables • Global South Africans

8. International Marketing Council Quarterly ReportApril – June 2011

9. Executive Summary • Board Activity Highlights: • IMC Board report back meeting with the President • Appointment of additional Board Trustees. • Establishment of the Board Sub Committee - Funding Committee. • Amendments to Governance Documents – Trust Deed and Charters • Operational Highlights: • Initiation of the domestic and international marketing programmes. • BRICS summit messaging and branding programme. • Launch of domestic active citizenship campaign - “Play your part” • Launch of “What makes us South African” activation with Department of Arts and Culture – Freedom Day. • Reputation Enhancers • South Africa won the Brand Finance Award - most valuable Nation Brand in Africa and 34th globally. • Peaceful and successful municipal elections - pointing towards South Africa’s “maturing” democracy.

10. Major Trends and Developments Impacting IMC Work • The period of April to June 2011 has been characterised by some key shaping events in the future of the nation. • The culmination of the BRICS invitation took place in April with a Summit being held in China • The international media focussed on the invitation - China, India and Brazil were the most focussed on South Africa, with • Russian media showing very little interest in the inclusion of South Africa into the grouping. • Local government elections were covered positively in international media. •   Top valued African brand by the independent financial advisory firm Brand Finance (34th globally & value of $149.7bn) •   IMD Competitiveness Yearbook and Transparency International’s Global Peace Indices were released. •   According to the 2011 Global Peace Index (GPI) levels of world peace dropped for the third consecutive year.   • SA is ranked 118th (out of 153 countries in 2011) which is a slight move upwards since 2010, where the country was • ranked 121st (out of 149 countries • Lower ratings on safety and security in society with poor performances on violent crime, homicide rates and perceived • criminality in society. • Highest positive ratings and on par with the most peaceful nations in key areas such as political stability, level of • organised conflict, relationship with neighbouring countries. • Financial Times released its Foreign Direct Investment (FDI) Outlook Report for 2011 during the quarter.   • The National Planning Commission under Minister Trevor Manuel recently released the Diagnostic Overview . •   Issues in Libya continue to be a continental concern with a strong focus on President Zuma’s role in international politics. • SA’s role and how it will use its new found influence within global institutions is set to be an area of future focus from an • international media point of view.

11. Performance Summary Domestic Perception Audit • 50% of South Africans see themselves as South African first. • 81% believe they have a better quality of life in SA than anywhere else • 89%believe SA can become a truly wealthy and powerful nation • 67% believe that SA offers its citizens opportunities not available • elsewhere in the world • 76%anticipated their children's wealth to become better than theirs Nation Brand Reputation • From 35th to 37th– but improvements on all the dimensions WEF Global Competitive-ness Index • From 45th – 54th - performance remained stable – decline • reflects improvements in other countries. Reputation Index Brand Equity • From $135b to $149.7b - • From 45.95 to 56.41 - biggest supporters are BRIC countries

12. Fulfilment of IMC Business Plan – IMC Performance by Outcome • Stakeholder consultations & research on pay off line commenced • Stakeholder Summits in 5 Provinces • Training programmes in North West, Gauteng & Free State. • Brand Alignment • Increased Pride & Patriotism • Contextualisation & Articulation • of Policy (Competitiveness) • Positively Changed Perceptions • International & Domestic • Economies of Scope and Scale • Sustainable Organisation • Domestic perception survey results will be available in Q2. • Launched domestic active citizenship campaign – Play your part • Corporate partners 7. Government 3. Civil Society 3 • Business Elite Research initiated • Partnership with Financial Times – BRICS Market Roundtable • Partnership with African Investor – WEF Africa :regional integration • Brand Familiarity Research Initiated – Project Thrive • BRICS summit activation in China – Sanya • Global Marketing Forum - Ghana • Average international media reputation rankings – 48 • Brand pillar awareness levels at 70% range • Media partnership value to date – R1million • Corporate partnership value to date – R150k • Amendments to governance documents – Trust Deed & Charters • Policy amendments • Risk review and profile amendments

13. Brand South Africa – Q1 Performance on Impact Measures

14. Brand SA – Q1 Performance on Outcomes Measures

15. Brand SA – Q1 Performance on Outcomes Measures

16. Changes to Business Plan • Changes effected to the business plan pertained to internal movement of budgets to cover the R4m • required for the new Programme Managers/Coordinators positions for USA, UK and Head Office. • The budget allocation also includes Programme Managers for Brazil and Asia. • The above will be funded by re-prioritisation of the 2010/11 budget as follows:

17. FINANCIALS: Financial Performance as at 30 June 2011 The surplus is related to expenditure that will come in Q2 for Media Monitoring tender and some international PR invoices, due to finalisation of country plans.

18. Corporate Governance and Control • Internal Controls And Procedures •  Annual Board Charters were reviewed and approved by the relevant committees in Q1. Amendments to the Trust Deed are awaiting Presidency review. • Risk Management •  The 2011/2012 Strategic Risk Plan was approved by the Board on the 24 May 2011. • The overall Strategic Risks amount to 19 and only 12 were escalated to be managed by the Board of Trustees. The rest will still be managed by Management. • A workshop on Operational Risks is expected to take place in Q2. • Commitments, Contingencies And Legal Proceedings •  Due to the payoff line being halted, the IMC had at year end a surplus of R24 576 749. • Request has been submitted to National Treasury for roll –over of surplus funds • The IMC currently has one CCMA case pending which relates to the CFO. • The disciplinary enquiry involving another senior manager was finalised.

19. Key Projects for the Next Quarter • Implementation of Play Your Part campaign to encourage active citizenship • Heritage Day seminar on Ubuntu and diversity/the legacy of Nelson Mandela • Roundtable with publishers, editors and commentators for Ambassador (USA) • Research (Diaspora survey focus group USA) • Lord Mayor of London – outbound investment trip dinner • SA film/fashion/arts culture Festival (UK) • Inbound media tour • Brand Africa Forum • SAA inaugural flight to China – media programme in support • OPEDS and business roundtable around; OECD Manufacturing Report, IOC, ANHOLT City Brands Index, • World, Investment Report • SKA bid support • Rugby World Cup • All Africa games • COP 17 • 123rd IOC Meeting in Durban (4-9 July)

20. Project Plan: Brand Positioning & Brand Expression Strategy June July Aug Sept Oct Nov • Stake holder Approvals Phase • Stake holder Input Phase Brand immersion • Stakeholder Inputs : • Govt. (NPC,DAC,SAT, ICTS, DIRCO, Gov. Clusters • Bus. ( BUSA,BLSA, CMO, NAFCOC etc • Media ( SANEF. SABC, DStv-TV, • Civil Society Labor Unions, Religious groups, Market Research Strategy Development & Refinement • Internal approval: • Manco • Marco • Board & Provco Strategy Refinement Stakeholder Approvals • Public Inputs Participation Platforms: • What makes us South African national bus tour, • DAC, SAT, NPC >5000national respondents • MDDA Community Radio and print • Govt. • Bus. • Civil Soc. • Media Strategy Refinement • Final Cabinet approval • Cabinet committee • Cabinet

21. Thank You