Agriseta AFS for the year ended 31 March 2010 AGM presentation 15 Sep 2010

Audit Opinion Auditor-General issued an Unqualified Audit Report Draw attention to the relicensing of Setas NSDS III is yet to be finalized by the Department of Higher Education and Training. 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 15 Sep 2010

Employers info – March 2010 17,381 (2009: 16,6633) registered employers 4,424 (2009: 4,258) employers paying SDL levy - Total levies received R161,5M (2009 R142,6M) Applications received by 30 June 2009 (for 2010): WSP’s = 1,709 (previously 1,680) Total amount paid towards Mandatory Grants – R72.5m (2009 R60M) – Payout % 73%(2009:73%) reduced numbers of levy payers due to R500k threshold AGM presentation 15 Sep 2010

Project Grant Expenditure March 2010 Total project spend: R95,1 (2009 R59.6M) Top 5 projects on spending (90%): Learnership/Skills 2.8/4.1 R 28.8m ABET Project R 12.9m Skills Programmes 18.1/18.2 R 15.4m Workers Programmes R 22.3m NQF Capacity R 6.2m Other Projects R 9.5m Total Project Expenditure R 95m Grouped projects together AGM presentation 15 Sep 2010

Statement of Financial Performance March 2010 INCOME R’000 SD Levies, penalties & interest 162,983 NSF & special projects income 7,155 Investment and other income 12,321 Total 182,459 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 15 Sep 2010

Statement of Financial Performance March 2010 EXPENSES R’000 Employer grant Discretionary >Paid >Accrued 72,562 83,391 11,695 Admin expenses 19,653 NSF & Special project expenses 7,155 Total 194,456 Net deficit: 11,997 - 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 15 Sep 2010

Statement of Financial Position March 2010 ASSETS R’000 Property Plant & Equipment 4,623 Intangible assets Receivables 12 3,663 Cash 159,174 Total 167,473 Receivables relate to 2 month levies received after year end AGM presentation 15 Sep 2010

Statement of Financial Position March 2010 EQUITY & LIABILITIES R’000 Grant and Other Reserves 129,246 Capitalisation reserve 3,107 Payable & Provisions 34,436 Grants and funding in advance 684 Total 167,473 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 R124m approved for future projects AGM presentation 15 Sep 2010

Discretionary Reserve Discretionary Reserve R 127.6m Approved by board R 124.4m Allocation to Top 5 Projects(67%): Workers Programme R 29.2m Mentoring-Land Reform R 19.9m Skills Programmes 18.1-2.8 R 15.9m Learnerships/skills R 10.3m ABET R 8.5m AGM presentation 15 Sep 2010

Cash Flow Statement –Summary March 2010 Net cash outflow operating activities: 9,750 Net cash outflow investing activities: 307 Net decrease in cash 10,057 Cash and cash equivalents: 159,174 AGM presentation 15 Sep 2010

Conclusion Questions? AGM presentation 15 Sep 2010 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 15 Sep 2010

Conclusion Thank You AGM presentation 15 Sep 2010