we save lives south african weather service presentation to the portfolio committee presented by...

We Save Lives

South African Weather ServicePresentation to the Portfolio

Committee

Presented by Bruce Tashe

5 September 2006

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Gough

SANAE

Marion

SAWS Operational Areas

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“To be a world-class meteorological organization that contributes to the sustainable development of South Africa and beyond our borders.”

SAWS Vision

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Our mission is to collect, process and provide meteorological data, products and services for the use of all South Africans and beyond our borders.

SAWS Mission

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SAWS Mission will be achieved through:

* Excellence in forecasting processes

* Cutting edge technology

* Accessing the international observations networks

* Research and innovation aimed at improving and developing our products and services

* Facilitating co-operation with regard to observation networks

SAWS Mission

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Strategic Objectives

STRATEGIC OBJECTIVES FOR THE FINANCIAL YEARS 2006/9

Strategic Objective 1: (SO1)

Ensure financial viability and sustainability


Ensure corporate governance and strategic leadership


Ensure SAWS becomes a learning organization

Strategic Objective 4: SO4)

Create a client-centric organization


Improve internal business processes

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High Level Structure

RISK MANAGEMENT

OFFICE MANAGEMENT

BOARD

CEO SECRETARIAT & COMPLIANCE

INTERNAL AUDIT

OPERATIONS CFO HCMCOMMERCIAL CORPORATE AFFAIRS

EXECUTIVE PROJECTS MANAGEMENT

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STRATEGIC OBJECTIVE : 1 ENSURE FINANCIAL VIABILITY AND SUSTAINABILITY

KPA KPI

Performance Targets Evidence of performanc

e/IndicatorBaseline

Year 1 2006/07

Year 2 2007/08

Year 3 2008/09

Year 4 2009/10

Manage operational costs

Ensure spending against budget (R3.5 m) R1.5 m variance

R1 m variance

R1 m variance / R1 m variance Variance

Reduction in identified operational costs

R10 m R9 m R 9m R9m R9 m Reduction in operational costs

Increase revenue base

Increased revenue from cost recovery services

R151 m R162 m[1] R177 m R180 m R190 m % revenue growth from baseline

Increased revenue from Commercial Services

R6 m R7 m[2] R12 m R19 m R23 m % revenue growth from baseline

Increase innovation funds and alternate research funds

R500k R500k R600 k R800 k R1.2 m % increase in additional funds

Investigate the possibility of ring-fencing SAWS owned commercial products and services

0 100% completion of business case

Implement Business Case



Business case for ring fencing implemented

Formalise partnerships with revenue generation potential

0 1 cum 3 cum 5 cum 8 cum Number of agreements/contracts concluded

Infrastructure modernization

Maintain and grow Capex in accordance with the re-capitalisation plan

R11.4 m R26.1 m[3] R109 m R98m R72 m Approved funds against capital investment plan

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Financial Results

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Projected Income & Expenditure

Table .Financial summary for the SAWS

R Thousand 2006/07 2007/08 2008/09

Revenue

Commercial and other Income 60,039 64,550 69,023

Transfers grants received 114,393 120,112 124,916

Total revenue 174,432 184,662 193,939

Expenses

Current expense 174,432 184,662 193,939

Compensation of employ ees 92,483 97,382 103,154

Goods and serv ices 69,444 73,914 76,499

Depreciation 12,505 13,366 14,285

Total expenses 174,432 184,662 193,939

Surplus / (Deficit) (0) (0) (0)

Medium-term estimate

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Cash Flow Summary

Cash flow summary

Surplus / (Deficit) – – –

Depreciation add back 12,505 13,366 14,285

Operating surplus / (deficit) before changes in working 12,505 13,366 14,285

capital

Changes in w orking capital 2,000 2,000 2,000

(Decrease) / increase in accounts pay able – – –

Decrease / (increase) in accounts receiv able 2,000 2,000 2,000

Decrease / (increase) in inv entory – – –

(Decrease) / increase in prov isions – – –

Cash flow from operating activities 14,505 15,366 16,285

Cash flow from investing activities (31,500) (23,500) (16,500)

Acquisition of Assets (31,500) (23,500) (16,500)

Cash flow from financing activities – – –

Net increase / (decrease) in cash and cash equivalents (16,995) (8,134) (215)

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Balance Sheet Data

Balance Sheet Data

Carrying Value of Assets 122,156 132,290 134,505

Cash and Cash Equivalents 15,266 7,132 6,917

Receivables and Prepayments 10,509 8,509 6,509

Inventory 711 711 711

TOTAL ASSETS 148,642 148,642 148,642

Capital & Reserves 96,347 96,347 96,347

Post Retirement Benefits 16,103 16,103 16,103

Trade and Other Payables 20,000 20,000 20,000

Provisions 11,669 11,669 11,669

Managed Funds 4,523 4,523 4,523

TOTAL EQUITY & LIABILITIES 148,642 148,642 148,642

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2006 Financial ResultsRestated

2006 2005 VarianceR R

Revenue 167.2 153.8 8.7%

Administrative Expenses (2.4) (1.8) 33.3%

Employee benefits expense (70.7) (65.4) 8.1%

Armortisation (0.2) (0.2) 0.0%

Depreciation (9.8) (6.4) 53.1%

Other operating expenses (80.8) (58.8) 37.4%

Finance costs (0.2) -100.0%

Operating surplus 3.30 21.00 -84.3%

Revaluations of land 3.3 20.3

Suplus for the year 6.60 41.30 -84.0%

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2006 Financial Results

AWS and Aviation 12.5 %

2006 2005 Variance

Rm Rm %

Government Grant 103.7 96.9 7.0%

Commercial and Other 60.2 53.5 12.5%

Project Income 1.2 -100.0%

Investments 3.3 2.2 50.0%

Total Income 167.2 153.8 8.7%

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Note: 2005 – Reduction in Aviation income due to tariff adjustments retrospectively

Commercial Income (R million)

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006

Aviation Income

Commercial and Other Income

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Operating surplus (deficit)

-10

-5

0

5

10

15

20

25

2002 2003 2004 2005 2006

R million

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2007 Quarter One Results2007 2007 2007

Actual Q 1 Budget Q 1 Variance Q 1R R R

Revenue 44.8 44.0 (0.8)

Administrative Expenses (0.5) (0.9) (0.4)

Employee benefits expense (19.8) (22.8) (3.1)

Depreciation (2.5) (3.1) (0.6)

Other operating expenses (16.8) (17.1) (0.3)

Surplus for the year 5.3 0.0 (5.3)

Note: Employee benefits – vacancy and new posts, budget spread.

R million

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First Quarterly Report

2006

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• Board Meetings• EXCO• Committees:

* Commercial* Finance* HR & Remuneration* Programmes * Risk & Audit

Corporate Governance

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Internal Communication• Breaking down of silos• Promotion of dialogue between management

structures

* Extended executive management committee

* Management Forum

* Forecasting Forum

Internal BusinessProcess Perspective

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External Stake Holders• Collaboration with various national and

international bodies:

* World Meteorological Organization

* International Civil Aviation Organization

* National and Provincial Disaster Management Structures

Internal Business Process Perspective

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Observation Platforms• A Cam Camera was installed over the

Outeniqua Mountains• Automatic Weather Stations• Automatic Rain Gauge Systems• Hogen Hydrogen Generators• Upper air sounding equipment

* Intermet Africa Systems* Tellumat


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Focused Research• Hail detection and analysis• Integrated rainfall information system• Indigenous knowledge• Flash flood warning system• Establishment of a Research fund


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• Improvement of forecasting workstations at all forecasting offices, by upgrading the PCGrids software to the new 32-bit version.

• Purchased an NEC Super computer which facilitates the implementation of the UK Met Unified model

Information Communication Technology

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Issued invitations to bid for :

* Marketing Strategy

* Media strategy

Customer Perspective

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To increase our drive to educate learners, educators and members of the general public about weather, SAWS participated in the following community outreach programmes:

* “Bring a girl child to work campaign”* Science Week exhibitions in Phalaborwa and Secunda* SASOL science festival

Community Outreach

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* The Grahamstown Science festival and career exhibition

* Hosting of over 240 learners by Bethlehem Weather Office during the local Science

Expo

* Scheduled visits on an ongoing basis by university students and schools to the

Cape Town GAW Laboratory.

Community Outreach

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Modernisation Plan

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• A significant number of people in South Africa are living in areas vulnerable to extreme weather events.

• Timely, quality,understandable, value-added and interpreted information is essential for sound decision making.

• Modern infrastructure is required to provide the data on which weather warning service are based.

Introduction

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• The construction of roads, housing, schools, clinics, sports facilities, water supply are all weather sensitive activities.

• Weather conditions can and will influence the building and improvement of the 10 stadiums that will be used during the 2010 FIFA World Cup.

• Of particular importance is that although only 4% of all flights in the world are over Africa, 28% of all accidents occur over this continent.

ASGISA

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• Accurate and reliable weather forecasts and warnings of severe and changing weather conditions for the fixtures at different stadiums will be of prime importance.

2010 FIFA World Cup

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• The SAWS helps to:* Increase food security by providing timely advice to farmers on likely climate and weather conditions.* Protect lives and property by providing real- time information to water resource managers for flood control activities.* Mitigate or minimize threats posed by desertification, ozone layer depletion, acid rain, air pollution and climate change.

Socio Economic Benefits

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SAWS helps to:• According to Newspaper reports more that 500

people died from 2000 to 2005 in South Africa of weather related causes.

• Improve the safety and efficiency of traveling by air land and sea.

• Save lives and property by providing risk management information for disaster management.

• In a flash flood in 1995 near Pietermaritzburg, 173 people were killed.

Saving lives

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Severe weather events that had an significant impact on lives and property in South Africa extracted from Newspaper reports.

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120

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160

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

Weather Related Natural Disasters

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• Up to 60% of all production losses in the agricultural sector are weather related.

• Agriculture alone consumes 50% of the country`s water resources including for irrigation as production is constrained by uneven spatial and temporal distribution of rainfall.

Job Creation

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• The weather radar network systems will be renewed with more sophisticated systems that are available in the market.

• These systems will provide:

* Improved rainfall estimates

* Detect the transition between rain and snow

Radar network

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* Track storm movements and intensity more accurately

* Allow earlier detection of precursors of severe weather development such as tornado`s, severe thunderstorms, large hail etc.

* Information on microbursts and wind shear

Radar network

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Weather Radar Network

New S band 2nd hand S Band S Band in SADC countries C Band New S Band towards end of period

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Aviation Weather Service

Graphic demonstration of a down burst

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• A lightning detection network, consisting of 19 lightning sensors was deployed.

• There are roughly 2000 thunderstorms in progress around the world at any one time, producing about 30 to 100 cloud-to-ground flashes each second or about five million flashes a day.

Lightning Detection Network (LDN)

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Lightning Detection System

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• According to newspaper reports at least 40 persons died in 2005 due to lightning.

• Lightning related insured-claims damage can be as high as R 500 million per annum.

Benefits of LDN

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• Early warnings of impending disasters and their effective dissemination are key factors to successful disaster prevention, mitigation and preparedness.

• Adequate, integrated weather observation networks are essential for all high quality weather forecasts and warnings.

• Linked to climate change, weather-related disasters in Southern Africa are increasing at an alarming rate due to increases in the vulnerability of all our people.

Conclusion

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Questions and Clarities !!!

Thank You

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