1 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE 12 MARCH 2003.
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Transcript of 1 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE 12 MARCH 2003.
1
PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE
12 MARCH 2003
2
WORLD-CLASS AIR TRAFFIC SERVICESWORLD-CLASS AIR TRAFFIC SERVICES
ENSURE SAFE NAVIGATIONENSURE SAFE NAVIGATION
DELIVER A REAL RETURN ON INVESTMENTDELIVER A REAL RETURN ON INVESTMENT
KEY ROLE PLAYER IN AVIATION SAFETYKEY ROLE PLAYER IN AVIATION SAFETY
EMPLOYER OF DEMOGRAPHICALLY REPRESENTATIVEEMPLOYER OF DEMOGRAPHICALLY REPRESENTATIVE
WORKFORCEWORKFORCE
ACTIVE ROLE IN REGION AVIATION DEVELOPMENTACTIVE ROLE IN REGION AVIATION DEVELOPMENT
COMMITMENT TO THE COMMITMENT TO THE SHAREHOLDERSHAREHOLDER
3
CREATE SUSTAINABLE/IMPROVEDCREATE SUSTAINABLE/IMPROVED RSARSA SERVICE DELIVERYSERVICE DELIVERY
-PEOPLEPEOPLE CAPACITY & TALENT MANAGEMENT CAPACITY & TALENT MANAGEMENT
-IMPLEMENTATION OF NEW SAAATS SYSTEM-IMPLEMENTATION OF NEW SAAATS SYSTEM
-STRENGTHEN CUSTOMER RELATIONSHIPS-STRENGTHEN CUSTOMER RELATIONSHIPS
MAINTAIN FINANCIAL INTEGRITY
-REGULATED VS NON-REGULATED REVENUE-REGULATED VS NON-REGULATED REVENUE
PRIORITISE STRATEGIC OPPORTUNITIESPRIORITISE STRATEGIC OPPORTUNITIES
SOUND PARTNERING STRUCTURESSOUND PARTNERING STRUCTURES
STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES
4
2002/20032002/2003
AIRCRAFT MOVEMENTS : 550 000 AIRCRAFT MOVEMENTS : 550 000
TARIFF TURNOVER : R285M TARIFF TURNOVER : R285M
FULL SERVICE : 9 AIRPORTSFULL SERVICE : 9 AIRPORTS
SERVICE ON CONTRACT : 12 AIRPORTSSERVICE ON CONTRACT : 12 AIRPORTS
* * AIRCRAFT MOVEMENTS : 100 000 AIRCRAFT MOVEMENTS : 100 000
TOTAL EMPLOYEES : 600TOTAL EMPLOYEES : 600
ATS STAFF : 330ATS STAFF : 330
TOTAL AIRSPACE : 22 000 000KM2TOTAL AIRSPACE : 22 000 000KM2
KEY NUMBERSKEY NUMBERS
5
FINANCIAL PERFORMANCE
6
FORECAST RESULTS : 2002/03FORECAST RESULTS : 2002/03 Aircraft movements expected to increase from 432,300 to 460,000
(Growth of 6.8%)
Tariff related turnover expected to increase by 17% from R244M to R285M
Other revenue decreases by R7M due to:
- Forex loss on revaluation of dollar assets of R7M vs profit of R6M last year
- Lower income from AIS services - R1M
- Lower interest income of R1,7M vsR4M - due to capital projects down payments Partially offset by increases in :
- VSAT revenue R1.3M - higher movements
- Training revenue R6,3M (36%)
Expenditure higher than budget due to:
- Additional staff costs
- Higher insurance costs Core business profit (excl. VSAT) - expect to achieve target of R38M before tax
compared to last years R27M (40%)
Expected ROCE of 7,4% vs target of 14%
7
MOVEMENT COUNTS OVER TIMEMOVEMENT COUNTS OVER TIME
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03
8
INTERNATIONAL COMPARISON OF EN-ROUTE
ANS CHARGES-900nmCHARGES-900nm
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
$2,600
$2,800
$3,000
$3,200
$3,400
$3,600
ATNS ZIMBABWE IRELAND * AUSTRALIA
#
NEW
ZEALAND +
ASECNA BOTSWANA CZECK REP * NAV
CANADA
NATS (LHR)
*
COUNTRIES
B747 (395 m.t.)
B767 (185 m.t.)
A320 ( 75 m.t.)
9
REVENUEREVENUE
0
50
100
150
200
250
3001
99
6/9
7
19
97
/98
19
98
/99
19
99
/00
20
00
/01
20
01
/02
20
02
/03
Tariff Revenue
Other Revenue
RM’s
10
NET PROFIT BEFORE TAXNET PROFIT BEFORE TAX
0
5
10
15
20
25
30
35
40
45
50
19
96
/97
19
97
/98
19
98
/99
19
99
/00
20
00
/01
20
01
/02
20
02
/03
RM’s
11
REVENUE PER MOVEMENTREVENUE PER MOVEMENT
0
100
200
300
400
500
600
700
800
19
96
/97
19
97
/98
19
98
/99
19
99
/00
20
00
/01
20
01
/02
20
02
/03
Revenue permovementExpenditure permovement
R’s
12
INCOME STATEMENTINCOME STATEMENT
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07Total Revenue 233 240 298 340 406 450 493 543Tariff Revenue 204 215 244 285 334 366 403 445Other Revenue 29 25 54 55 72 84 90 98
Operating costs 168 170 215 242 297 319 328 342Salaries 100 112 124 138 159 167 174 183Elec Maintenance 18 9 17 19 24 25 26 27Telecoms 13 15 18 22 25 27 28 29Other 37 34 56 63 89 100 100 103
Operating profit 65 70 83 98 109 131 165 201
Depreciation 35 42 46 52 56 67 72 80
Profit before tax 30 28 37 46 53 64 93 121Taxation 9 8 12 14 16 19 28 36Profit after tax 21 20 25 32 37 45 65 85
R’Million
13
BALANCE SHEETBALANCE SHEET
1999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 2006/71999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 CAPITAL EMPLOYED Shareholders Equity 310 330 355 387 424 469 534 618 Long Term Liabilities 43 59 52 191 172 146 116 83
353 389 407 578 596 615 650 701
EMPLOYMENT OF CAPITAL Fixed Assets 338 347 388 446 500 499 568 638 Net Current Assets 15 42 19 132 96 116 82 63
353 389 407 578 596 615 650 701
R’Million
14
ATNS INVESTMENT IN INFRASTRUCTURE
• R365M OVER PAST 5 YEARS:
• COMMUNICATION R86M
• NAVIGATION R30M
• SURVEILLANCE R204M
• FACILITIES R45M
• FURTHER R225M IN THE NEXT 2
YEARS ATNS
15
CAPITAL EXPENDITURECAPITAL EXPENDITURE
0
20
40
60
80
100
120
19
99
/00
20
00
/01
20
01
/02
19
99
/00
20
00
/01
20
01
/02
20
02
/03
20
03
/04
20
04
/05
20
05
/06
20
06
/07
R’M
16
KEY RATIOSKEY RATIOS
1999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 2006/71999/0 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 Return on Capital Employed 6.94% 6.02% 7.37% 8.52% 9.22% 10.76% 13.46% 15.11% Return on Equity 6.97% 6.15% 7.33% 8.64% 9.16% 10.03% 12.92% 14.72%
Return on Turnover 7.92% 7.93% 8.20% 9.61% 10.33% 11.61% 14.12% 16.11% Gearing Ratio 0.04 0.08 0.06 0.41 0.33 0.24 0.16 0.08
17
OUR PEOPLE
18
-- LEADERSHIP DEVELOPMENT LEADERSHIP DEVELOPMENT
-- COMMERCIAL AWARENESS COMMERCIAL AWARENESS
- - CAREER PLANNING AND DEVELOPMENT CAREER PLANNING AND DEVELOPMENT
-- CLIENT SERVICE CULTURE CLIENT SERVICE CULTURE
-- MANAGEMENT OF DIVERSITY MANAGEMENT OF DIVERSITY
- - REPRESENTIVITY OF BLACK PEOPLE AND REPRESENTIVITY OF BLACK PEOPLE AND
WOMEN IN ALL LEVELS OF THE ORGANISATIONWOMEN IN ALL LEVELS OF THE ORGANISATION
HR PRIORITIESHR PRIORITIES
19
PORTFOLIO COMMITTEE ON TRANSPORT
STAFF COMPLEMENTSTAFF COMPLEMENTRACE / GENDER GROUPINGRACE / GENDER GROUPING
NOV '96
84%
16%
WM
WF
BM
BF
APR '00
50%
19%
24%
7%
WM
WF
BM
BF
FEB '03
42%
18%
27%
13%
WM
WF
BM
BF
TARGET DEC '03
37%
17%
28%
18%
WM
WF
BM
BF
20
OPERATIONAL
ENHANCEMENTS
21
PROGRESS - SOUTH AFRICAPROGRESS - SOUTH AFRICA
COMPLETE
FULL SSR - COVERAGE WITH REDUNDANCY
FULL VHF - COVERAGE FROM 1500FT
RNAV ON MAIN ROUTES
CHANGED FROM 6 FIR’S TO 3
ADS/CPDLC - IN OCEANIC
RANDOM OPERATIONS
ELECTRONIC FLIGHT PLANS/NOTAMS
CENTRAL AIRSPACE MANAGEMENT UNIT - PHASE I
22
PROGRESS - SOUTH AFRICAPROGRESS - SOUTH AFRICA
IN PROGRESS (2003)
• AUTOMATED SEQUENCING (TERMINAL AREAS)
• ELECTRONIC HANDOVER
• ADS/SSR INTEGRATION
• REDUCED SEPARATION - 10 MIN TO 10 MILES
• CENTRAL AIRSPACE MANAGEMENT UNIT -
PHASE II
23
CLIENT BENEFIT ANALYSIS - CLIENT BENEFIT ANALYSIS - APRIL 2004 FOLLOWING APRIL 2004 FOLLOWING
INVESTMENTINVESTMENT
RM/annum
HOLDING DELAY REDUCTION
- CENTRAL AIRSPACE MANAGEMENT UNIT
- TRACK DEFINITION
- AUTOMATED SEQUENCY R 6M
REDUCED TRACK - FLEXIBLE USE OF AIRSPACE R12M
RADAR - OPTIMUM FLIGHT LEVELS R40M
OCEANIC RANDOM ROUTING R12M
RNAV ROUTES - SHORTER ROUTES R22M
FAJS CAPACITY - 20% INCREASE R 2M
TOTAL R94M
24
AVIATION TRAINING
ACADEMY
25
SERVICES PROVIDED
• FULL RANGE ATS TRAINING
• TECHNICAL SUPPORT TRAINING (SYSTEMS/CONCEPTS)
• AIRPORTS TRAINING
• AVIATION ENGLISH TRAINING
• CONSULTANCY SERVICES
26
ROLE IN SADC
• HARMONISATION OF TRAINING STANDARDS
- ACTIVE WORK GROUP MEMBERS
- UPLIFTMENT TO POTENTIAL
- ALL ICAO BASED
• TRAINING CENTER EVALUATION
- REQUIRED STANDARDS
- CAA RECOGNITION
27
INTERNATIONAL CO-OPERATION
• CO-OPERATION WITH THE FAA (ATS TRAINING)
• FORMAL AGREEMENT WITH IATA/ATDI
• TRAINAIR MEMBERSHIP
• ICAO (AVSEC BASIC AUDITORS COURSE)
• ISO 9001
• CO-OPERATION IN SADC
28
EXTERNAL CLIENTBASE
• ALL 14 SADC STATES
• 16 OTHER AFRICAN STATES
• VARIOUS SECURITY COMPANIES IN SA
• PROVINCES
29
ATNS IN THE REGION
30
Achievements 2001-2002
31
4 STRATEGIES
• COMMUNICATION NETWORK FOR
AFRICA
• INFRASTRUCTURE RENEWAL
• REGIONAL SERVICE PROVISION
- UPPER AIRSPACE CONTROL CENTRE
(UACC)
•TRAINING
32
33
34
35
36Progress: VSAT
Nafisat
• ATNS invited by ICAO to the workgroup meeting 4-5th February
• ATNS currently evaluating the viability of the “Cape to Cairo” network.
• Meeting scheduled for 24-26 February between ICAO, MD and GM: BD to discuss future of Nafisat and ATNS/IATA relationship
Middle East VSAT
• 2nd Taskforce meeting scheduled held 3 February 2003. Meeting went well.
• High level meeting scheduled for 10-11 March with MD, GM:BD and Mr Zerhouni, ICAO Cairo
• Site visits planned 26 Mar – 1 Apr 2003
• Anticipated completion end April 2003
Afisnet
• Interconnectivity achieved Oct 2002
• AFTN JHB - Dakar
• ATS/DS Antanorivo to Beira and Antannanorivo to Dar es Salaam
• CAFSAT testing
13 -30 Jan 03
SADC
• Current network operating well overall servicability above 90%. Fortnightly follow –up with all clients
• Finalising inclusion of Burundi and Rwanda
• Proposed new network – 3rd Taskforce meeting scheduled for February 03. Board presentation March 03
37Progress: Towards Regional Service Provision
East African UACC
• Feasibility study underway being funded by European
bank
• Kenya, Tanzania, Uganda, Rwanda and Burundi to participate
SADC UACC
• UACC Steering Committee 6 November 2003. Contract referred for the additional work referred back to ISI and USTDA. Still no reply from ISI.
• Next meeting to take place in Mozambique
• SA Hosting proposal development on hold
• Best practice study planned for 2003/2004
• Verification of UACC impact on ATNS Study postponed to 2003/2004 financial year