SAPO%20GROUP

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SAPO GROUP
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Financial Overview 2003-2004
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Financial overview 2003/2004
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Key achievements Improved Financial Performance

• 31 March 2003.
• Operating loss R170 million.
• 31 March 2004.
• Operating profit of R35.5 million.
• Target was R1.8 million.
• Improvement in operating profit.
• R205 million.

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Key achievements improved financial performance

• Revenue growth of R261 million 6.3 .
• Increase in costs of only 1 .
• Aggressively managing costs and curtailing non
  value adding expenditure.
• Creative management of capital expenditure
  through Partnerships
• Outright Purchase - Lease - Pay for use
• Decrease in staff numbers of 1 042 due to
  voluntary packages.
• Reduction of fleet 350 vehicles.

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Key achievements improved financial performance

• Improvement in working capital.
• Reduction of Post Office debtors days from 30 to
  20 days.
• Generation of approx R270m cash from operations.

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Key achievements - Postbank

• YTD MAR 2004 growth of R560 million in Postbanks
  depositors book compared to 31 March 2003, 46
  growth.
• Introduction of Thuso insurance product.
• Miracle 2000 R38.6 million deposit.
• Introduction of new savings products ( term save,
  bonus save and group save).
• Growth of accounts 528 000 new accounts, 28
  growth.

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Balance Sheet Improvements

• Negative retained earnings R1.4b at March 2004.
• To be resolved through
• Reduction in post retirement medical aid
  liability R2.3b (provided R1.1b)
• Postbank recapitalisation R750m
• Review of property values
• Sustainable profitable performance

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Key projects for 2003/2004.

• 51 Post Offices have been installed with New
  image. / upgraded.
• SAP upgrade.
• E-BDN.
• Fixed assets project.
• Server consolidation.
• Upgrade of Network.
• Biometrics
• Online private box renewals.
• Financial switch.

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Operating profit
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Subsidy
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History
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2001/2002 SUBSIDY
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2002/2003 SUBSIDY