Agriseta AFS for the year ended 31 March 2009 AGM presentation 21 October 2009

AGM presentation 21 October 2009 Agriseta AFS Received an unqualified audit report from the AG - Draw attention to the relicensing of Setas NSDS II five year period ends 31 March 2010 AGRISETA has applied for the renewal of its certificate of establishment Reported on performance information – no findings The slides deal in detail with the main set being 12 months ended 31 March 2007 Emphasis relates to common revenue problem being addressed by NT, Dol and AG and accounting treatment of project assets AGM presentation 21 October 2009

AGM presentation 21 October 2009 Employers info – March 2009 16,633 (2008: 16,638) registered employers 4,258 (2008: 4,368) employers paying SDL levy - Total levies received R142,6M (2008 R131,5M) Applications received by 30 June 2008 (for 2009): WSP’s = 1,680 (previously 1,553) Total amount paid towards Mandatory Grants - R60M (2008 R61M) - (Estimated 73% payout) reduced numbers of levy payers due to R500k threshold AGM presentation 21 October 2009

Project Grant Expenditure March 2009 Total project spend: R59,6 (2008 R39.5M) Top 5 projects on spending (88%): Learnership Project 5.4M ABET Project 9.9M Skills Programmes 18.1 & 18.2 15.5M Workers Programmes 18.7M NQF Capacity 3.0M Grouped projects together AGM presentation 21 October 2009

Statement of Financial Performance March 2009 INCOME R’000 SD Levies, penalties & interest 143,808 NSF & special projects income 78 Investment and other income 18,195 Total 162,081 SD Levies 80% of employer contributions received from DoL (also includes transfers to/from other Seta’s) NSF & Special projects relates to monies from non SDL funding AGM presentation 21 October 2009

Statement of Financial Performance March 2009 EXPENSES R’000 Employer grant & project exp 119,893 Admin expenses 18,733 NSF & Special project expenses 78 Total 138,704 Net surplus: 23,377 - Admin expenses are within the legislated 10% limit. Significant discussion relating to this in the New/ updated funding regulations (currently activity based costing used) - The deficit indicates spending in the current period of income accumulated previously. This is very necessary to constantly manage down the cash reserves whilst it is important not to commit more funds than are available AGM presentation 21 October 2009

Statement of Financial Position March 2009 ASSETS R’000 Property Plant & Equipment 5,112 Intangible assets Receivables 16 1,375 Cash 169,231 Total 175,734 Receivables relate to 2 month levies received after year end AGM presentation 21 October 2009

Statement of Financial Position March 2009 EQUITY & LIABILITIES R’000 Grant and Other Reserves 141,196 Capitalisation reserve 3,107 Payable & Provisions 24,547 Grants and funding in advance 6,884 Total 175,734 Of the R99.9M R79.5M has been approved for future projects Payable relate to o/s Grant payments of R19.3M and Project and Trade Payables of R11.6M R3.3M Relates to amounts due to SARS R135M approved for future projects AGM presentation 21 October 2009

Cash Flow Statement –Summary March 2009 Net cash inflow operating activities: 24,947 Net cash outflow investing activities: 495 Net increase in cash 24,452 Cash and cash equivalents: 169,231 AGM presentation 21 October 2009

AGM presentation 21 October 2009 The End Questions? Note 18 - Pending litigation 2 cases Significant legal fees incurred Note 23 - Transfers in R726k out R434k Other RP, new disclosure in which disclosed transaction (project expenses) with entities which had nominated representative on the Board (important to identify any interest in contracts) AGM presentation 21 October 2009