1 Presentation by the Chairperson of the SABC Sonwabo Eddie Funde SABC annual results presentation to Parliament 31 October 2006

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Presentation by

the Chairperson of the SABC

Sonwabo Eddie FundeSonwabo Eddie FundeSABC annual results presentation to ParliamentSABC annual results presentation to Parliament31 October 200631 October 2006

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The SABC Board’s goals

• Promote democracy, non-racism, nation-building and empowerment through innovative programming that is informative, entertaining and educative in all official languages

• Align SABC with Broadcasting Charter, SABC objectives and Editorial Policies

• Create financially sound company

• Revitalise the company

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The SABC Board’s goals conti..

• Ensure full statutory and regulatory compliance

• Ensure employment equity and BEE

• Create an SABC that enjoys support and respect

• Ensure compelling, professional and authoritative news and current affairs

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• Ensure SABC plays a role in supporting NEPAD and the African Renaissance

• Put technology platform and other infrastructure in place

• Ensure interesting, dynamic and educative programming

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• Enable innovative use of technology

• Monitor alignment with Broadcasting Act and editorial policies

• Authorise policy documents

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Meeting corporate goals

• Management has made excellent progress in implementing corporate goals

• This year’s results show solid achievements in:

Promoting democracy Promoting national unity Ensuring sustainable financial viability Improved governance Regulatory discipline Gaining respect and support of its stakeholders Opening up services to remote areas and disadvantaged

communities

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Engaging with stakeholders

• SABC is closer than ever before to its listeners and viewers, policymakers, legislators and business

• Board continued to prioritised stakeholder engagement this year to ensure an SABC that is sensitive to the needs of the people of South Africa

• Visits to provincial capitals, engagements with labour and business, roundtables with film producers

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Engaging with stakeholders

• Engagements have been invaluable:

– Highlighted SABC’s role in nation-building

– Identified gaps in shaping understanding

– Helped us understand the challenges

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Building a strong organisation

Significant progress in improving corporate governance

Appointment of new GCEO

Strengthening the Executive and gender equity – 6 women executives

Attendance and participation in board meetings and subcommittees continues to improve

Board secretariat strengthened

Stronger corporate governance controls

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Increasing universal access

• Critical area of interest for the Board

• Heartening to note progress:

– Broadcasting in all 11 official languages, including !Xu and Khwe

– Notable increase in programming for people with disabilities

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Increasing universal access

• Significant growth in SABC footprint in last five years

– Ikwekwezi from 30% to 81%– Ligwalagwala from 34% to 68%– Ukhozi FM from 68% to 87%– SABC1 from 82% to 89%– SABC2 from 85% to 91%– SABC3 from 71% to 77%

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Showing strong financial growth

Revenue increased to R3.9-billion

After-tax profit of R382-million

Growth in all major financial areas

Matched by increased expenditure in key programming areas:

– Local content

– News and current affairs in indigenous languages

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Meeting our public service mandate

• Exceptionally strong performance on public service mandate

• Public Broadcaster that:

– Speaks to everyone as a citizen– Encourages access and participation in public life– Develops knowledge, broadens horizons and enables

people to better understand themselves

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Meeting our public service mandate

• Continue to shape public discourse around role of public broadcaster, and funding models

– International conference in March on ‘Funding the future’

– ‘Media and society’ conference in partnership with SANEF

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Making advances in content production

• New licence conditions provide clear benchmark for programming and content

• Adapted swiftly to new conditions since introduction in March

• Editorial policies bedded down

• High-quality coverage of local government elections

• Appreciate efforts of partners in ensuring compliance and quality

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Looking back, looking forward

• Board has made significant progress in achieving its goals:

– Particularly on ensuring SABC contributes to nation-building, deepening democracy and ensuring an empowered citizenry

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• Going forward:

– Continue to consolidate the public service mandate

– Increase provision of compelling, informative, educative and entertaining programming

– Even better performance in financial and governance targets

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• All eyes on 2010:

– Guarantee world-class coverage

– Ensure the world is as captivated as South Africa by this event

– Put up a show that will make the African continent and its Diaspora proud

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Thank You

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Presentation by the GCEO of the SABC

Advocate Dali MpofuAdvocate Dali MpofuSABC Annual Report: Presentation to ParliamentSABC Annual Report: Presentation to Parliament31 October 200631 October 2006

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Introduction

One year down the line:

– Significant advancement on all fronts:

Strong delivery on public service mandate

Solid corporate governance

On track with delivery against Key Performance Indicators

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Introduction cont…

Audience growth of 97%

Exceptional revenue growth

Solid progress with technology plan

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New Corporate Strategy

New corporate strategy: Total Citizen Empowerment (The Green Revolution)

New organisational structure, with seven pillars:PeopleOperationsTechnologyFundingNews and current affairsGovernanceGroup CEO support

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Conversations & Partnerships

Restoration of Human Dignity

Building a Common Future

Values “the glue that binds the organisation”


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• New strategy shifts from inward-oriented, self-assessing stance, to a broadcasting culture that is at all times citizen-focused, and translates into changes in:

Service delivery

internal operations

commissioning and content acquisition strategies

human resource deployments

resource allocations


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Reasons for Change

SABC plays important role in promoting democracy

Nation Building

Promoting social cohesion

Reflecting cultural and regional diversity


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The year in review

‘‘The SABC has evolved to being The SABC has evolved to being a public broadcaster whose a public broadcaster whose

mandate and primary focus is to mandate and primary focus is to ensure that every citizen is ensure that every citizen is

empowered through our empowered through our programming’programming’

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Putting people first

Massive drive to put people at centre of operations

Raised the bar on employment and gender equity, and redressing imbalances of the past

Impact

– Renewed energy – Increased stakeholder relations– Visible improvement in staff morale

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Putting people first

Challenges

– Fill key vacancies

– Improve SABC’s appeal as employer of choice

– Widespread training and skills development challenges

– Need for mentoring and succession planning

– Ensure inclusion of people with disabilities

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News and Current Affairs

Delivering radio and television news and current affairs in 13 languages (including Xun and Khwe)

Research shows that SABC News is the primary source of news

13 editorial offices, over 900 permanent staff, four foreign bureaus

1586 news bulletins and 190 current affairs programmes broadcast on radio per week

130 bulletins and 5 current affairs shows on television per week

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Public service radio

Average daily listener rates stable

Radio time spent listening improved

Strong delivery on local content

Increased footprint for PBS Radio Stations beyond 80% coverage

Radio Platforms

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Growth plans based on:

Improved programming and local language content

Afro centric approach

Integration with television, where possible

Ongoing training and exposure for practitioners

Radio Platforms

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Commercial Radio

Good growth in average daily listener rates

Commercial services attracting young audiences: ages 16-35

Urban dominance

Impressive Revenue Growth

Radio Platforms

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SABC 1, SA’s number one television station with 15.2 million daily audience

SABC 2, primary family television station broadcasting in 11 official languages

SABC 3, Commercial Channel with 15% market share. Posted positive audience growth.

Television Platforms

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Content Enterprises

Content hub: Continues to grow local content

SABC Sport: broadcast sports of national interest, development sports and international events

Education: fulfills education mandate

Other units address international content acquisition, business development and acquisition, operations, finance and human capital

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Content Enterprises

Key challenges

– 2010 Project, to oversee investments in technology and human capital

– Multi-channel project, to ensure world-class content development

– Industry development initiative to assist local production industry

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SABC Network:SABC Network:Local Content FY 05/06Local Content FY 05/06

2003 local content regulations: Overall local content55% for PBS & 35% for PCBS

Source: Broadcast Schedules 2005 (Apr 05-Mar 06)

Full Day

Prime Time

63.0 64.7

72.2

78.5

SABC NETWORK COMPLIANT WITH LOCAL CONTENTSABC television has delivered above the local content requirements as per ICASA regulations

41.846.1

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Mandate Performance Review: Mandate Performance Review: Local Content (ownership)Local Content (ownership)

55%

13%

32%

Black Owned

Black Empowered

White Owned

In summary, out of the 114 companies commissioned to date, 55% were black owned – bringing in new voices, new stories – reflecting the diversity of South Africa

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As a Public Broadcaster we believe that our success is based on the following factors:

Pushing boundaries and addressing issues that are normally ignored by politicians, churches, parents, and schools;

Provoking dialogue – getting the nation to talk to itself

on critical issues

Key Success Factors: Public Broadcasting

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Carrying real stories told by real people – stories that are from the heart, authentic, and about our people, their hunger to live and to make a difference; about hope and renewal;

Ensuring that our stories are not about selling our stations and channels, but about changing attitudes, inspiring people, and transforming norms;

Key Success Factors: Public Broadcasting cont…

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Offering programme line-ups for every age group ranging from documentaries and drama to entertainment and actuality; and

Being governed by regulations and policies that protect the rights of individuals, women and children, and ensuring that in news and other programmes we preserve the dignity, privacy and integrity of all concerned.

Key Success Factors: Public Broadcasting cont…

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Technology

Technology plan being actively implemented, with four key components:

– Broadcast technology solutions

– Information technology solutions

– Facilities development and management

– Human capital development

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Technology

Total cost: R1.3-billion. R400-million already secured from government, with total of R700-m long-term commitment

Benefits already being felt, and will increase as we approach 2010

Challenges remain:– Capacity– Skills

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Finance and FundingSignificant improvement on last year’s historic performance – profit of R383-million almost doubled from R194-million in previous year

Total revenue grew by 17%

Very pleasing growth in PBS radio

Solid growth maintained in television

Audience service revenue grew by 30% to R739-million

Funding breakdown includes:– TV licences: 19% of funding mix– Non-commercial funding: 25%

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Transformation and Social Impact

BEE and SMMEs– Remarkable increase of services procured from black-owned

business and SMMEs

– Capital expenditure programme will increase this by R250-million

Siyanqoba– Launched to promote concept of a winning nation

– Huge success – provincial visits, widespread coverage

– Will continue in various guises until 2010, extended to other codes including cricket

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African Renaissance and NEPAD

– Significant programming focus on and off-screen

– Plans for 24-hour news channel for Africa at advanced stage

– Increase in domestic news coverage of Africa

– Content commissioning committed to telling the African story

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Universal access

– Additional 5-million people received SABC services in last five years

– Increase in transmitters and coverage

– Alignment with ISRDP

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Celebrating Our People

A host of awards and accolades

– SABC1: Apex Awards

– SABC Africa: Harambe International, Africa Economic Development Awards, African Business Achiever Awards

– Religion: Good Vibrations nominated for Best Documentary at ‘God on Film’ Festival

– Audience services: five Loeries for advertisements, plus Best Advert from Creative Directors’ Circle

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Celebrating Our People

A host of awards and accolades

– Commercial Enterprises: Awards for Radio Sales, plus Supplier of the Year (SABC Sales).

– Education: World Media Festivals’ gold award, plus Rose d’Or Social Awareness Award

– Vignette consolidated solution award UK 2005. SABC new media technology team

– Magic Cellar won two bronze Telly Awards in the "Children" and "Animation" categories and was chosen as winner among 12 000 entries that were received.

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Going Forward No room for complacency

– Identify and explore new opportunities

– Increase services for marginalised sections of society

– Implement economic and human development approach to content creation, ensuring development of South African themes, issues and stories

– Expand and improve involvement of black-owned business and SMMEs

– Gear up for 2010!

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Going Forward Impact of the ECA

Regulatory: Removes the barrier between telecommunications, broadcasting and ICT’sBrings about technology neutrality in terms of delivery modes of contentEmpowers as it removes dual jurisdiction on telecoms and broadcasting

Funding:Allows the SABC to easily venture into non-broadcasting services and leverage revenue for a sustainable PBS Portfolio.

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Going Forward

Impact of the ECA

Legislation

The Broadcasting Act will effectively become the

“SABC Act” as all provisions remaining following the

passing of the ECA apply to the SABC only

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Going Forward

Impact of the ECA

New market structure:

The following will be the market activities to be

licensed:

electronic communication services; electronic communications network services; radio frequency spectrum; and broadcasting

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In Conclusion

‘‘Our success should no longer be Our success should no longer be measured solely on the basis of our measured solely on the basis of our

financial performance. Important as this financial performance. Important as this is as a barometer of efficient is as a barometer of efficient

management, it is our delivery against management, it is our delivery against the freedoms enshrined in the the freedoms enshrined in the

Constitution, the requirements of the Constitution, the requirements of the Broadcasting Charter and our delivery on Broadcasting Charter and our delivery on our Corporate Goals that shows our true our Corporate Goals that shows our true

performance’performance’

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Thank You

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SABC2010 FIFA WORLD CUP

PREPARATIONS Presentation to

Parliament

31st October 2006

Broadcasting For Total Citizen Empowerment

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INTRODUCTION

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INTRODUCTION• Germany 2006 is over the world’s focus is now on

South Africa.

• There still remains vast amounts of work to be done before we as a Nation are ready to host the world.

• Contrary to skeptics and their prophecies of doom, this is task that is fully feasible. South Africa and all her people assisted and supported by Southern Africa and Africa at large will successfully host a memorable World Cup in 2010.

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INTRODUCTION• There are numerous learnings that have been gathered from

Germany. As a National Broadcaster the SABC had a crew based Germany for over 6 weeks, in a bid to bring the 2006 World Cup home but also to acquire an insight into the intricacies of the World Cup.

• A foremost learning is the importance of communication prior, during and post a World Cup.

• The modern day World Cup lends a lot of its success to 3 major aspects, outside of the traditional planning processes. Communication, Communication and more Communication.

• At the heart of the FIFA World Cup is the Television Signal– it must be planned and delivered as a Television Spectacle (Branding, Revenue Generation, Atmosphere).

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SUCCESS IN HOSTING THE FIFA WORLD CUP

• Hosting a FIFA World Cup competition has always and will continue to have a tremendously positive impact on the overall improvement of a country.

• The FIFA World Cup has acquired such immense dimensions and international importance that the direct involvement and active support of the Government has become a prerequisite of the FIFA World Cup.

• Building on the structure execution structure used in 2006, in 2010 FIFA is taking a hands on approach in commercial activities:

– Selling of all rights– Selling of Sponsorship– MATCH Company– TV Productions

• The success of the 2010 Soccer World Cup in South Africa will be measured on not only the 4 weeks of the finals in June/July 2010, but also on the successful staging of FIFA events prior to the World Cup as well as the legacy that the event leaves behind for South Africa and Africa

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AFRICA’S CALL• Ensure Africa has access to the 2010 Soccer World Cup – Ensure

acquisition of broadcast rights with URTNA and SABA (SABC CEO is SABA President).

• Institute a Africa Wide Marketing drive – partner with FIFA Legacy campaign, “one year to South Africa Road Show (the path of an African Horn”, SABC to launch a 24hrs News Channel by March 07, and the SABC Chairs the Africa Broadcaster Media Partnership on Aids.

• Create a broadcasting legacy to improve the Football economy – build partnership between local broadcasters and FA’s using the rights as an incentive.

• Create a legacy in terms of access to communication – eg Silencing the Guns for 30 days in 2010 Campaign.

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Africa’s Call Progress• Collaboration with URTNA and SABA discussion on the achievement of a truly African World Cup underway.

• Communication and education plans underway

• Broadcasting into Africa proposal is that the SABC in association with Government to assess the probability of acquiring all the Africa rights, with SABC acting as the Gatekeeper, in a bid to assist struggling broadcasters.

• SADC plans in place to ensure the inclusion of SADC broadcasters in the SABC’s activities for 2010 to ensure a knowledge sharing process and regional legacy and skills development.

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NATIONAL OBLIGATION

Technically, there is need for the broadcasting technical infrastructure to drive the Nation towards Digitization and world class technologies such High Definition TV (HDTV) – HDTV trial conduct in June 1st van HDTV due in October

Need to assist FIFA to deliver World Class International feed by

delivering the minimum guarantees as signed by our government –

await definition of the SABC’s role in this aspect.

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NATIONAL OBLIGATION

There is a need to ensure a far more comprehensive delivery of

signal across the length and breadth of the country to all

Provinces, Cities, Towns, Villages Homesteads and Homes –

Universal Access and DTT

Timing of event for public viewing, consumption and participation,

and economic impact

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NATIONAL OBLIGATIONS• It is critical that all our Citizens have the right not only to see the World

Cup, listen to it and experience it, but that they are able to do so in the language and a cultural relevance of their choice.

• There is a need to ensure that all the Citizens of our Nation, are empowered to be the hosts that the world expects them to be, come June and July 2010.

• There is a need to ensure that the World Cup does not happen around us in our own country, but happens with us and through us – Broadcasting becomes the core to the delivery of this aspect.

• The 2010 FIFA World Cup must and will live beyond the 9th of July 2010 and as such we must plan with this in mind, The development of a legacy for all to benefit from is critical

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THE GUARANTEES

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THE DOC GUARANTEE

•SAFA made certain undertakings in the Bid Book which now has been converted to contractual obligations.

•The South African Government has signed various guarantees required by FIFA to ensure the success of the South Africa 2010 FIFA World Cup.

•The SABC’s focus is obviously on the guarantees provided by the Minister of Communications, through her Department (DOC) .

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THE DOC GUARANTEE• The guarantee deals mainly with two areas:

–Telecommunications; and–Broadcasting

•The Broadcasting guarantees extends to the following:–Establishment of an International broadcast Centre (IBC)–Reliable broadcast infrastructure backup to the IBC – power supply, space requirements etc.–Establishment of venue media centres, the main press centre and the main media centre at all venues.

•The Telecommunication guarantees extends to the following:–Making available telecommunication infrastructure (which includes the transport of bidirectional broadcast traffic between the venues and the IBC at no cost)–Quality of service guarantees

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EFFECTING THE BROADCAST VALUE CHAIN

• As SABC and LOC we must ensure that, that which we do, does not only comply to FIFA standards, but strive to serve the nation for decades to come – create a Legacy

• There is a requirement for SABC/DoC and LOC to work collaboratively to meet national obligation and FIFA expectations

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Stadium

Audio/Video Production

Commentary

Unilateral facilities

Media Output

IBC

International Local Gateway

Unilateral

End user

End user

•Physical Infrastructure production•Telecommunication plug and dial ready•Media centre

•OB Vans•TV Monitors and phones •Radio requirements•Data terminals

•Receiving•Distribution•Transmission•Archives•Rights holder requirements

•Transport infrastructure and mechanism

•Transport (satellite,landlines,fibre optic)

TYPICAL BROADCAST VALUE CHAIN

Non-unilateral venues

Mobile video

Technical Operations

Centre

Data

Mobile Output

Data Output

Media Output

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Stadium

VALUE CHAIN REPORT CARD

Training Venues

AREA

Requirement

Options

Progress

Stadium

Training Venues

Physical Infrastructure production

Telecommunication plug and dial ready

Media Centre

Minimal as per stadium

Broadcast infrastructure built as part of the upgrade.

Cohesion between the LOC and SABC

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Audio/Video Production

Commentary

Unilateral facilities

Media Output

VALUE CHAIN PROGRESS REPORT

Mobile video

Data

AREA Requirements

Options

Progress

Venue Production

OB Vans

TV Monitors and phones

Radio requirements

Data Terminals

Country facilities supplemented by leased equipment,

Agreement between, HBS,FIFA and SABC at an advance stage

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AREA

Requirement

Options

Progress

Technical Operations Centre

Transport infrastructure and mechanism with 100% backup power

Built in at infrastructure build up.

Cohesion between the LOC and SABC.

Technical Operations

Centre

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AREA Requirements

Options

Progress

IBC Receiving

Distribution

Transmission

Archives

Rights holder requirements

Satellite farm

100% backup power

Venue•Nasrec •ICC Durban•Ekhuruleni•ICC Cape Town

Power•Generator as main power, local power backup

Venue for IBC to be determined by pitching

IBC

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AREA

Requirements

Options

Progress

Transport Infrastructure

Transport infrastructure with 100% redundancy

•1 main satellite and 1 redundant

•Main satellite and fibre optic network for redundancy

Dual satellite

or

satellite and fibre optic

International Local Gateway

Unilateral

Mobile Output

Data Output

Media Output

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SABC’S COMMITMENT TO 2010

THE VISION

An African World Cup accessible to all South Africans and Africans, in a medium and language of their choice and delivers

a broadcasting legacy that enhances Broadcasting for Total Citizen Empowerment beyond final whistle in 2010.

THE MISSION

To produce and deliver a signal of the most reliable, technically sound, artistic, visionary and entertaining quality possible,

surpassing current international trends and benchmarks, whilst championing the nations readiness and the African agenda.

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SABC’S COMMITMENT 2010 Commitment

To ensure that every South African has access to the World Cup in a medium and cultural relevance of their choice, 1 World Cup 47 Million viewers and listeners

Delivery

1.Through the multi-language broadcast on SABC Sport, deliver a broadcast that not only entertains but empowers the Citizens of this countrry.

2.In association with LOC/FIFA/Host Cities, provincial governments, other municipalities and sponsors ensure that there are adequate public viewing centers in urban and rural areas1. Fan Parks2. Community Centers, schools and clinics – partnership for access3. Shebeens, taverns, cinemas, pubs and restaurants – partnership for SMME

participation.

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SABC’S COMMITMENT 2010

Commitment

To engender a 2010 legacy for football across South Africa, and beyond

Delivery

1.Ensure a close relationship with host cities/training cities and base camps to ensure that stadiums are beneficial to football beyond 2010

2.Develop broadcasting relationships with relevant stakeholders on the back of 2010 to ensure effective communication that spans beyond 2010

3.Develop an appetite for football beyond the current traditional consumers to ensure that the football fever that exist in 2010 continues to benefit football structures beyond 2010

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Commitment

To support Government’s continental commitment through the creation of a truly African World Cup

Delivery

1.Drive a support strategy for other African teams that will qualify for South Africa 2010, expose their players to the Nation, develop programming that endears their teams to the Nation, to ensure full stadiums in their support.

2.Engage other African Broadcaster to ensure:1. That skills and expertise transfer happens across the borders2. African stories are told in a manner that Africans would want them told3. Drive marketing and awareness – Africa must attend and support Africa’s first World

Cup

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Commitment

To rekindle, nurture and galvanize the Nation behind one goal support for Bafana Bafana and behind staging a succesful 2010 FIFA World Cup

Delivery

1.Commission programming that focuses on the 2010 World Cup with the following aspects in mind:1.Educating the public on what it means to be a Host Nation2.Prepare the Nation on what to expect in 20103.Educate the Nation on how to make the World Cup work for them4.Thanking the World for our freedom

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To rekindle, nurture and galvanize the Nation behind one goal support for Bafana Bafana and behind staging a succesful 2010 FIFA World Cup

Delivery

2.Siyanqoba Campaign – a partnership with SAFAGarner maximum support to Win the World Cup for the First Time on Home Soil

3.Launch a weekly 2010 show on all our show – partner with LOC to have a scorecard for the countries readiness.

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To produce and deliver a signal of the most reliable, technically sound, artistic, visionary and entertaining quality possible, surpassing current international trends and benchmarks, whilst championing the nations readiness and the African agenda.

Delivery

1.Implement an HR development strategy to up skill our staff compliment so as to be active participants in the production arena

2.Already we are investing in the Digitization of the SABC broadcasting infrastructure.

3.Drive an aggressive benchmarking strategy against perceived World market leaders

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SABC – REPORT CARD

Rights secured to all the build up events and all 64 matches for 2010 and 2014, SABC now engaged in assessing the involvement of other local broadcasters in the broadcasting of 2010.

SABC is taking delivery of its first HDTV van on the 30th October 2006, training and development has commenced in preparation for a supporting role to FIFA’s broadcasters

Meetings have commenced with the FIFA broadcasting team to try and determine what role the SABC can and will play during the 2010 World Cup.

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CHALLENGES

Digital Migration still needs to be addressed (SENTECH/SABC/DOC)

The reach capacity of the sector needs to be enhanced to achieve a total coverage of the Nation by 2010

Access to broadcast content still remains a problem particularly in the rural areas

There is still a need to address the relevance of broadcast content particularly in the language aspect that we broadcast in.

HDTV readiness

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Thank You

Vuka South Africa.

Vuka Sizwe!

Documents

1 Presentation by the Chairperson of the SABC Sonwabo Eddie Funde SABC annual results presentation to Parliament 31 October 2006