sapo group
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SAPO GROUP. Financial Overview 2003-2004. Financial overview 2003/2004. 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. - PowerPoint PPT PresentationTRANSCRIPT
SAPO GROUP
Postbank POST OFFICE SAVINGS BANK
Financial Overview 2003-2004
Financial overview 2003/2004
SA POST OFFICE GROUP R'000
Operating income 4,352,474Operating expenses 4,316,946
Operating Profit 35,528
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.
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.
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.
Key achievements – improved financial performance
YTD MAR 2004 growth of R560 million in Postbank’s 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.
Key achievements - Postbank
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
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.
Operating profit
(350,522)
(170,196)
35,527145,536
220,612303,196
414,585
(400,000)
(200,000)
200,000
400,000
600,000
2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008
Subsidy
History
FY Carry B/F Subsidy Total UtilisedCarry
forwarded2001/2002 0 600,000 600,000 180,177 419,8232002/2003 419,823 300,000 719,823 505,607 214,2162003/2004 214,216 300,000 514,216 478,216 36,0002004/2005 36,000 300,000 336,000
2001/2002 SUBSIDY Human resources 78,241USO 89,259Re-engineering projects 12,678
180,177
USO50%
Re-engineering projects
7%
Human resources43%
2002/2003 SUBSIDY Human resources 308,288USO 113,982Infrastructure 21,797Re-engineering projects 51,373Other 10,167
505,607
Re-engineering projects
10%Other2%
USO23%
Infrastructure4%
Human resources61%