1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR
SUPPORTED EMPLOYMENT ENTERPRISES (SEE) OVERALL PERFORMANCE AND PLANS
25 OCTOBER 2017

2. EMPLOYEE HEADCOUNT AND EMPLOYMENT CREATION NUMBERS
Province
Factory Name
31 March 2017
Qtr. 1 Appointments
Total Complement
Free State
Bloemfontein 45 16 61
KwaZulu Natal
Durban 94 10
104
Eastern Cape
East London 47
Gauteng
Springfield
Nothern Cape
Kimberly
Pietermaritzburg 34 22 56
Port Elizabeth 63
North West
Potchefstroom 33 3 36
Pretoria 96 9
105
Rand 81
Western Cape
Epping 93
103
Ndabeni
164 5
169
GRAND TOTALS:-
891 75
966

3. OVERALL PERFORMANCE
COMPARATIVE ANALYSIS OF STRATEGIC OBJECTIVES QUARTERS 1 TO 4 : FINANCIAL YEAR

4. SEE OVERALL PERFORMANCE LEGEND
Achieved: On course- no major action needed
  % + Complete –Q1-Q4
Not Achieved : The target will not be achieved or was not achieved in the planned time frames- major remedial action and urgent intervention is required.
0% - 99% Complete –Q1 –Q4

5. ANNUAL PERFORMANCE COMPARISONS 2014/15 – 2016/17
2015/16
2016/17
Total Number of Performance Targets : 9
Total Achieved: 2
Total Not Achieved : 7
Total Number of Performance Targets : 10
Total Achieved: 3
Total Number of Performance Targets : 7
Total Achieved: 4
Total Not Achieved : 3
22% Achieved
30% Achieved
57% Achieved

6. SUPPORTED EMPLOYMENT ENTERPRISES
ANNUAL PERFORMANCE REPORT 2016/17

7. COMPARATIVE ANALYSIS OF QUARTERS 1 TO 4 PER STRATEGIC OBJECTIVES: 2016/17
Planned targets
Overall Achieved %
Increase sales of goods and services and maintain a healthy gross profit margin on all products manufactured in the SEE. 3 2
67% 1
33%
50%
Effective and efficient financial management and governance.
100%
Strengthen institutional capacity of SEE. 0%
Overall Performance 8 5
63% 6
75% 7 4
57%

8. PERFORMANCE INDICATORS 2016/17

9. PERFORMANCE INDICATORS 2016/17

10. PERFORMANCE INDICATORS 2016/17

11. PERFORMANCE INDICATORS 2016/17

12. REMEDIAL ACTION FOR TARGETS NOT ACHIEVED 2016/17
PROGRAMME PERFORMANCE INDICATOR
PLANNED TARGET 2016/2017
ACTUAL ACHIEVEMENT 2016/2017
STRATEGY TO OVERCOME UNDER-PERFORMANCE
DATE OF IMPLEMENTATION AND IMPLEMENTER
Production norms and standards developed and trainings conducted to factory managers and instructors by end of March 2017
Production norms and standards approved and training conducted.
NOT ACHIEVED
Performance norms and standards not implemented
Collaboration with productivity SA to assist with:
Conducting a work study and review of SEE manufacturing processes.
Development of SABS certified Norms & Standards
Implementation of approved SEE Norms & Standards throughout the factories.
Up-skilling of key personnel involved in production planning and execution.
01 April 2018
Director Operations

13. REMEDIAL ACTION FOR TARGETS NOT ACHIEVED 2016/17
PROGRAMME PERFORMANCE INDICATOR
PLANNED TARGET 2016/2017
ACTUAL ACHIEVEMENT 2016/2017
STRATEGY TO OVERCOME UNDER-PERFORMANCE
DATE OF IMPLEMENTATION AND IMPLEMENTER
Percentage increase of gross profit.
Gross profit margin increased to 41%.
NOT ACHIEVED
-149% gross loss
Implementation of SABS certified Norms & Standards to ensure efficient and cost effective production processes.
Increase revenue through capacitating the Business Development Directorate.(filling of currently approved vacant posts).
Development and implementation of a cost reflective price list.
01 April 2018
Director Operations
31 March 2018
Director Business Development
Chief Financial Officer

14. REMEDIAL ACTION FOR TARGETS NOT ACHIEVED 2016/17
PROGRAMME PERFORMANCE INDICATOR
PLANNED TARGET 2016/2017
ACTUAL ACHIEVEMENT 2016/2017
STRATEGY TO OVERCOME UNDER-PERFORMANCE
DATE OF IMPLEMENTATION AND IMPLEMENTER
3.1.1 Percentage of all SEE employees developed as per Work Skills Plan per annum.
80% of the Work Skills Plan implemented by the end of March 2017.
NOT ACHIEVED
32 officials underwent training (2% of the establishment) officials, 8 (25%) are persons with disability
Establishment of the SEE training committee.
Consolidation of training requirements for all directorates within the entity.
Filling of the vacant approved ASD HR training and Development post.
01 April 2017
Director Human Resources Management

15. 2016/17 CONDENSED ANNUAL FINANCIAL STATEMENTS

16. STATEMENT OF FINANCE PEFORMANCE FOR THE 2016/17 FINANCIAL YEAR
Note
31-Mar-2017
31-Mar-16
Restated R'
Revenue From Exchange Transactions
Sale of goods and services 3.
Cost of sales 4.
( )
( )
Gross (Loss)/Profit
( )
( )
Other Revenue
Interest earned - External investments
5.1
Interest earned - Outstanding receivables
5.2
Other income
5.3
Revenue From Non-Exchange Transactions
Transfers and sponsorships 6.
Operating expenditure
Allowance for obsolete inventory
13.
( )
Allowance for debt impairment and impairment losses
14.
( )
Depreciation and impairment 7.
( )
( )
Employee cost 8.
( )
( )
Profit/ (Loss) on disposal of assets 9.
( )
4 721
General expenses
10.
( )
( )
Operating surplus
Finance costs
11.
( )
( )
Profit/ (Loss) for the year

17. STATEMENT OF FINANCE POSITION FOR THE 2016/17 FINANCIAL YEAR
Note
31-Mar-2017
31-Mar-16
Restated R'
ASSETS
Non-current assets
Property, plant and equipment
12.
Current assets
Inventories
13.
Trade and other receivables (exchange transactions)
14.
Cash and cash equivalents
15.
Total Assets
EQUITY AND LIABILITIES
Equity
Retained earnings
Total EQUITY
Liabilities
Non-current liabilities -
63 373
Non-current finance lease liability
16.
Current liabilities
Trade and other payables (exchange transactions)
17.
Provisions
18.
Deferred income
19.
Current portion of finance lease liability
67 663
Total Liabilities
Total Equity and Liabilities

18. STATEMENT OF CASH FLOWS FOR THE 2016/17 FINANCIAL YEAR
Note
31-Mar-2017
31-Mar-16
Restated R'
Cash flows from operating activities
Receipts
Grants & Transfers
Customers and other receipts
Interest income
Payments
Suppliers and employees
( )
( )
Finance costs
(5 942)
(77 449)
( )
( )
Net cash flows from operating activities
20.
Cash flows from investing activities
Purchase of Property, plant and equipment
( )
( )
Proceeds on sale of Property, plant and equipment -
50 732
Net cash flows from investing activities
( )
Cash flows from financing activities
Finance lease payments
( )
( )
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

19. 2017/18 Q1 PERFORMANCE INFORMATION

20. SEE 2017/18: Q1 PERFORMANCE Strategic Objective
Programme perfomance indicator
Annual Target
Q1 Target
Actual Performance
1.1 Provide work opportunities for persons with disabilities.
Number of persons with disabilities provided with employment opportunities.
150 persons with Disabilities provided with employment opportunities in the SEE by end of March 2018 25
Achieved 47
2.1 Develop & implement programmes that promote employability of Persons with Disabilities
Number of marketing campaigns conducted per annum
9 Marketing and awareness campaigns regarding the existence of the SEE and products manufactured conducted by end of March 2018
Marketing Strategy Implementation Plan for 2017/18 developed by the end of the quarter
Marketing strategy developed and approved.

21. SEE 2017/18: Q1 PERFORMANCE Strategic Objective
Programme perfomance indicator
Annual Target
Q1 Target
Actual Performance
Number of radio campaigns conducted per annum
2 Radio campaigns conducted by end of March 2018 to create awareness of the existence of the SEE
No Target
N/A
Number of Print Media Campaigns conducted per annum.
4 Print Media Campaigns conducted by end of March 2018 to create awareness of the existence of the SEE
1 Print media campaign conducted for Q1
Not Achieved

22. SEE 2017/18: Q1 PERFORMANCE Strategic Objective
Programme perfomance indicator
Annual Target
Q1 Target
Actual Performance
Number of Special Schools visited and made aware of the existence of the SEE per annum.
100 special schools visited nationally and made aware of the existence of the SEE by the end of March 2018 25
4 special schools visited by the end of the quarter.

23. 2017/18 FINANCIAL PERFORMANCE – R’million (31 July 2017)
Revenue is below budget due to delays in production.
Only the Q1 subsidy received and the budget reflects 4 months, hence the variance on Other income.
Operating expenses are below budget mainly due to unfilled funded positions – timing variance.
Chief Directorate Communication |

24. SEE FUTURE PLANS SEE future plans include:
Issuing Terms of Reference by end of February 2018 to conduct a feasibility study on opening up two new factories in Mpumalanga & Limpopo.
Embarking on a process from 15 November 2017 with Legal Services assistance to develop proposed amendments to Chapter 7 of the ES Act to:
Clarify the status of SEE as Trading entities as opposed to current government components
To establish an advisory board & its functions
To clarify the appointment of the CEO and his/her powers.
To expand current employment levels of People with Disabilities during 2018/19 by employing an additional 200 persons in & another 250 in 2019 in line with the APP. SEE will visit special schools to conduct recruitment.
To secure more contracts through enhanced marketing & partnerships with government & other external stakeholders during 2018/19. This will include 9 products exhibitions, radio campaigns & print media.

25. SEE FUTURE PLANS During 2018/19 SEE:
5. To modernize factories through procurement of additional machinery without displacing current workers.
6. Develop new products that are labour intensive but also meet requirement for various markets.
7. Re-open medical clinics in all SEE factories & ensure that they are staffed with nurses & doctors from CF on regular agreed intervals.
8. Utilize spare capacity of SEE sections for employment creation projects e.g toilet paper, glass recycled projects & medical assistive devices for Compensation Fund.

26. Thank You…