BRIEFING BY ENTITIES ON 2015/16 STRATEGIC AND ANNUAL...
Transcript of BRIEFING BY ENTITIES ON 2015/16 STRATEGIC AND ANNUAL...
PORTFOLIO COMMITTEE ON TRANSPORT 2ND TERM PROGRAMME
14 April 2015
BRIEFING BY ENTITIES ON 2015/16 STRATEGIC AND ANNUAL PERFORMANCE PLANS 2015/16
TABLE OF CONTENT
ATNS MANDATE
ATNS STRATEGY
ANNUAL PERFORMANCE
ATNS CORE PROGRAMMES 2015/16
FINANCIAL PLAN
ATNS MANDATE
ATNS MANDATE
ATNS was incorporated in 1993 in terms of ATNS Company Act, Act 45 of 1993.
The Act mandates ATNS to provide Air Traffic Management Solutions and associated services on behalf of the State in accordance with ICAO Standards, recommended practice as well as the South African Regulations and Technical Standards.
AREAS OF RESPONSIBILITY
AREAS OF RESPONSIBILITY
ATNS is responsible for air traffic
control in approximately 10% of the world’s airspace.
CIVIL AVIATION REGULATORY & DELIVERY CONTEXT
ATNS STRATEGY
ATNS STRATEGIC PROFILE – 2015/16
STRATEGIC PROFILE
ATNS STRATEGY
ATNS Strategy is influenced and linked to industry planning initiatives
and governmental expectations.
ATNS has an outward, market-driven strategy focus
ATNS adopts a critical thinking process in formulating the strategy that
includes steps which eventually bring to the surface the Critical Issues
that management will address and resolve over a defined period of
time with the aim to achieve the desired profile.
ATNS STRATEGY
These Critical issues are the bridge between the current profile and
the future strategic profile of ATNS.
Reviewed annually for implementation success with new critical
issues developed in order to achieve outcome-oriented goals.
STRATEGIC THINKING PROCESS
ATNS STRATEGY
OUR VISION
To be the preferred supplier of air traffic management solutions and associated
services to the African continent and selected international markets
To provide safe, expeditious and efficient air traffic management solutions
OUR MISSION
ATNS STRATEGY
OUR VALUES
Safety
Accountability
Customer Satisfaction
Fairness & consistency
Continuous Improvement & Innovation
Open and effective communication
Employee engagement and development
ATNS STRATEGIC IMPERATIVES
Deliver continuous improvement of our safety performance
Become a transformative
organisation that invests in its people
Play a leading role in the deployment
of air traffic management in
Africa and selected international
markets
Maintain long-term financial
sustainability
Provide efficient air traffic management
solutions and associated services
that meet the needs and expectations of the ATM community
Deploy and use leading technologies to the benefit of the
ATM community
Represent ATNS’ broad-based strategic outcomes that the company wishes to achieve as a result of its existence and objectives.
ATNS STRATEGY LINKAGE
NATIONAL DEVELOPMENT PLAN DOT GOVERNMENTAL OUTCOME ATNS STRATEGIC IMPERATIVES
Establish effective, safe and
affordable Public transport
A transport sector that is safe
Deliver continuous improvement
of our safety performance
Establish a competitive base of
infrastructure, human resources and regulatory frameworks
An efficient and integrated transport infrastructure network
for social and economic development
Maintain long-term financial sustainability
Provide efficient air traffic management solutions and
associated services that meet the needs and expectations of
the ATM community
ATNS STRATEGY LINKAGE
NATIONAL DEVELOPMENT PLAN DOT GOVERNMENTAL OUTCOME ATNS STRATEGIC IMPERATIVES
Produce sufficient energy to support industry at
competitive prices, ensuring access for poor households,
while reducing carbon emissions per unit of power by about one-
third
An increased contribution of transport to environmental
sustainability
Deploy and use leading technologies to the benefit of the
ATM community
Play a leading role in the deployment of air traffic
management in Africa and selected international markets
Increase employment from 13 million in 2010 to 24 million in
2030.
Ensure that skilled, technical, professional and
managerial posts better reflect the country's racial,
gender and disability makeup
An increased contribution to job creation
Become a transformative
organisation that invests in its people
ATNS BUSINESS CONCEPT
NO. DESCRIPTION
1. Our strategy will be to focus on the ATM needs and expectations of the ATM community, primarily in South Africa, with a greater emphasis on the rest of Africa and other selected global markets.
2. We will develop a thorough understanding of the global ATM community with emphasis on product and service offerings, technology developments and clients in order to effectively respond to the needs and expectations of our selected markets with innovative and relevant ATM solutions and associated services.
3. We will source, develop, market, distribute and support a complete range of ATM solutions and associated services that meet the needs and expectations of access, equity, safety, security, efficiency, predictability, environmental sustainability and affordability, thereby supporting our clients and the ATM community at large.
ATNS BUSINESS CONCEPT
NO. DESCRIPTION
4. It is an imperative that we continue to enhance our ATM solutions and associated service provision in South Africa, in order to maintain a platform from which we can develop and leverage strategic partnerships, our global influence as well as harmonised technologies and methods, to become the leading ATM provider in Africa, to secure our future growth, revenue, profit and relevance as a provider of choice.
5. We will expedite our expansion into the rest of Africa and other selected global markets, through a focused business approach, whilst expanding our range of services in ATM that are appropriate for market needs and expectations.
ATNS BUSINESS CONCEPT
NO. DESCRIPTION
6. Our business model will be supported through attracting, developing, retaining and appropriately rewarding a diverse and motivated team, that has the right skills, experience, commitment and drive to implement this strategy, creating win-win solutions.
7. The effective implementation of this strategy will ensure a well-equipped resource base, responsible governance, industry transformation, enhanced sustainability and support the global ATM system.
AREAS OF EXCELLENCE #1
BUSINESS INTELLIGENCE
We must excel at ensuring that we have strategic far-sightedness, detailed insight and understanding of global market dynamics, and readily available information on technological and business trends, suppliers, products, clients and competitors.
AREAS OF EXCELLENCE #2
MARKET EXCELLENCE
We must excel at obtaining, developing, retaining and utilising specialist resources, capabilities and technology to formulate and provide air traffic management solutions and associated services, to ensure that they are innovative, of high quality, reliable and affordable, whilst ensuring that our operations across the entire business are reliable, consistent, efficient, timeous, sustainable and cost effective, in order to exceed client performance levels in accordance with requirements as the provider of choice.
AREAS OF EXCELLENCE #3
RELATIONSHIP MANAGEMENT
We must excel at building lasting relationships with our people, communities, government and other strategic partners – suppliers, clients and the ATM Community - that are built on trust, are flexible, relevant, supportive, robust and are conducive to creating win-win situations.
ATNS CRITICAL ISSUES 2015/16
1. Build a trusting relationship with employees by living the values
2. Review and implement a revised structure to implement the ATNS strategy (regulated & non-regulated)
3. Develop and resource a business intelligence function (including market intelligence)
4. Develop and implement a funding and delivery model for the acceleration of the non-regulated business
5. Develop and implement a performance management mechanism to monitor the implementation of the strategy
6. Develop and implement a talent management plan (including succession planning)
7. Investigate, develop and provide a 3rd party funding solution plan by country
ANNUAL PERFORMANCE
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at 2014/15
Targets 2015/16
1. TRANSPORT SAFETY AND SECURITY
1.2 Safety service provision
Reduce the ATNS safety events rate
Number of safety events per 100 000 air traffic movements. Inclusive of all movements.
2.0 safety events per 100 000 air traffic movements
2.0 safety events per 100 000 air traffic movements
1.2 Safety service provision
Increase the successful safe operation .
Providing successful safe operation and application of separation standards based on IFR flight hours to equate to 99.995% and an error margin of 0.005%.
N/A 99.995% successful safe operation and an error margin of 0.005%.
1.3 Operational Efficiency
Reduce overall traffic delays
Average delay per delayed flight.
120 sec 120 sec
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at 2014/15 Targets 2015/16
1. TRANSPORT SAFETY AND SECURITY
1.4 Operational Efficiency
Achievement of CNS Systems Availability
Average CNS Systems Availability
C: 99.67% N: 98.65% S: 99.77%
C: 99.67% N: 98.65% S: 99.77%
1.5 Ensure commercial sustainability
Ensure financial sustainability
Meeting financial target as per Budget.
D/E =25% C/A =3.65 ROCE =11.2%
D/E =10-45% C/A =2.5:1 ROCE =12.6%
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at 2014/15
Targets 2015/16
1. TRANSPORT SAFETY AND SECURITY 1.6 Performance-
based navigation (PBN) ACSA Airports
Implement ICAO PBN concept in South Africa. Near-term implementation targets in line with South African PBN Roadmap.
7 Design Reports for
submission to
SACAA (RNP APCH)
10 Design Reports
for submission to
SACAA (RNAV 1 and
2 SID/STAR)
RNP APCH (Baro-VNAV
where operational benefits
can be gained) in 50% of
instrument runways
•Achieved 55.5%
•5 of the 9 ACSA airport
have RNP APCH’s
RNAV 1 and 2 SID/STAR for
50% of International
airports.
•Achieved 50%
•3 of the 6 International
ACSA Airports are serviced
RNAV 1 / 2 SID/STAR
RNP APCH in 100%
of instrument
runways located at
ACSA airports by 31
March 2016.
RNAV 1 and 2
SID/STAR for 5 (or
80%) international
airports (ACSA-
owned) by 31
March 2016
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at 2014/15
Targets 2015/16
1. TRANSPORT SAFETY AND SECURITY 1.6 (b)
Performance-based navigation (PBN) Non-ACSA Airports
Implement ICAO PBN concept in South Africa. Near-term implementation targets in line with South African PBN Roadmap.
9 Design Reports for
submission to
SACAA (RNP APCH)
N/A
100% of contracted
designs..
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets 2015/16
2. INFRASTRUCTURE DEVELOPMENT AND HIGH-LEVEL INVESTMENT PLAN FOR TRANSPORT
2.1 Development of
optimized and efficient aviation infrastructure in a cost-effective manner.
Adoption and approval of CAPEX Implementation of CAPEX 2015/16 Strategic plan Roadmap Operational plan
Compliance with the acquisition and implementation of milestones of the CAPEX plan.
R151m R242m
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets 2015/16
2. INFRASTRUCTURE DEVELOPMENT AND HIGH-LEVEL INVESTMENT PLAN FOR TRANSPORT
2.2 Operation of the satellite communication networks SADC VSAT 2
Optimize revenue and ensure network availability.
Achievement of the revenue and network availability as per SLA targets.
SLA – 98.5% Revenue – R26.5m
SLA – 98.5% Revenue - R26.8m
2.3 Operation of the satellite communication networks NAFISAT
Optimize revenue and ensure network availability.
Achievement of the revenue and network availability as per SLA targets.
SLA – 98.5% Revenue – R26.1m
SLA – 98.5% R 26.4m
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at 2014/15 Targets 2015/16
3. THE FIGHT AGAINST FRAUD AND CORRUPTION
3.1 Comply with relevant legislation, regulation and standards.
100% compliance
Reports with no material findings from auditors. Sound internal control systems.
Unqualified audit report. Zero material non-compliance findings.
Unqualified audit report to be achieved for 2014/2015. Zero material non-compliance findings
3.2 Fraud and whistle-blowing policy
Fighting corruption and promoting good governance.
Matters investigated as per policy timelines.
Resolution of all matters raised within 90 days.
Resolution of matters reported through the Whistle Blowing within 90 days.
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets 2015/16
4. ENVIRONMENTAL PROTECTION 4.1 Implementation of
environmental plan.
Measure ATNS Carbon footprint
Human resources/training
Performance assessment
ATNS 2014/15 Carbon footprint inventory report Trained ATNS employees on Sustainability and climate change matters.
Environmental performance assessments
Calculate ATNS Carbon Footprint Inventory for 2012/13 FY. S & CC Awareness training programme for ATNS employees
Environmental Assessment Report
Calculate and report on ATNS Carbon Footprint 2015/16 quarterly Deliver Environmental awareness training to 50% of ATNS employees
Environmental Assessment Report ( 1 Annual Report at year-end)
DOT PERFORMANCE INDICATORS (KPI) FOR ATNS 2015/16
Item
no.
Business
objectives
Objective
measures
Annual
performance
indicators
Targets as at
2014/15
Targets 2015/16
5. TRAINING TO CONTRIBUTE TO JOB CREATION
5.1 Address societal challenges, thereby building a meaningful legacy for ATNS and the communities in which we operate.
ATS bursaries and engineering learnerships.
Trained ATS and engineering learnerships.
ATS - 60 Engineers Learnership 5 ETS – GEDP 6 Unemployed Graduates 6
ATS - 60 Engineering Learnership 6 ETS – GEDP 10 Unemployed Graduates 5
ATNS STRATEGY
Item
no.
Business
objectives
Objective
measures
Annual
performance
indicators
Targets as at 2014/15 Targets 2015/16
5. TRAINING TO CONTRIBUTE TO JOB CREATION
5.2 Manage the training pipeline for ATS and technical staff.
Adoption and approval of HC plan as per budget. ATS and TS training plan. Operational or implementation plan.
Achievement of the numbers as per budget. Adoption and approval of training plan. Compliance with the milestones of the plans.
ATCO 3 – 226 ATCO 2 – 37 ATCO 1 – 117 Eng. Technicians –74 Eng. Satellite Technicians - 5
ATCO 3 – 226 ATCO 2 – 37 ATCO 1 - 119 Eng. Technicians – 74 Eng. Satellite Technicians – 5
ATNS STRATEGY
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets 2015/16
5. TRAINING TO CONTRIBUTE TO JOB CREATION
5.3 Review and implement the HR plan to recruit, develop, retain, and reward employees across all disciplines.
Development programmes for employees, with emphasis on AIC and women.
Training investment as percentage of a salary bill.
3% Rand value of salary bill
3% Rand value of
salary bill
ATNS STRATEGY
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets
2015/16
6. BROAD-BASED BLACK ECONOMIC EMPOWERMENT
6.1
Achieve BBBEE targets. Achieve preferential procurement targets as set by the Transport Charter.
Percentage of discretionary spend on BBBEE. Total discretionary OPEX budgeted. Total CAPEX budgeted.
Achievement of BBBEE targets as per the Transport Charter.
BBBEE level 3 OPEX spend 65%, CAPEX spend 45%. Obtain the first BBBEE rating.
BBBEE level 3
ATNS STRATEGY
Item
no.
Business
objectives
Objective
measures
Annual
performance
indicators
Targets as at
2014/15
Targets
2015/16
7. EMPLOYMENT EQUITY
7.1 ATS EE targets( AIMO, ATSO, ATCO 1-3)
Achieve representation towards alignment of company staff profile with the demographics of the country.
1% increase : 2015/2016 AIC Target Retain 2014/15 ATS AIC Female Target
Achieve a target of 57% ATS AIC. Achieve a female target of 40% ATS.
Achieve a target of 58% ATS AIC. Achieve a female target of 40% ATS
ATNS STRATEGY
Item
no.
Business
objectives
Objective
measures
Annual performance
indicators
Targets as at
2014/15
Targets 2015/16
7. BROAD-BASED BLACK ECONOMIC EMPOWERMENT
7.2 ATNS EE targets
Increase representation of black (AIC) racial grouping with a particular focus on African and female representation towards creating alignment with the demographics of the country.
3% increase – year on year AIC (based on YTD) Retain 2014/15 AIC Female target (based on YTD) Retain 2014/15 target – people with disabilities (based on YTD)
Achieve a target 70% AIC. Achieve a company target of 46% female representation. Achieve a company target of 3.5% for people with disabilities.
Achieve a target 72% AIC Achieve a company target of 46% female Achieve a company target of 3.5% for people with disabilities.
ATNS CORE PROGRAMMES 2015/16
ATNS CORE PROGRAMMES 2015/16
PROGRAMME 1: The ATNS ATM Roadmap – ASBU
Supports ATNS strategic plan for implementing the ATM/CNS systems required for meeting user expectations
going forward.
PROGRAMME 2: NEWCO Programme
An opportunity for the non-regulated business to continue expansion into the region through a subsidiary
vehicle.
PROGRAMME 3: Business Processes
a project to provide a representation of the organization and its operational model in a visual manner, in order
to enable a unified organization understanding, operational standardization and the capturing of corporate
memory.
ATNS CORE PROGRAMMES 2015/16
PROGRAMME 4: IT Repositioning
A follow-on programme from the 2010 IT Business enablement roadmap to enhance IT governance and
achieve new business integration as well as creation of new IT functions.
PROGRAMME 5: Training Model Review
An initiative to review current training model in order to optimise the Aviation Training Academy’s operations.
PROGRAMME 6: Remote Service Provision
A programme to enable aerodrome control services to be provided in an airport from a location away from the
said airport.
2015/16 FINANCIAL PLAN
KEY ASSUMPTIONS
DESCRIPTION PROJECTIONS
BER CPI1 5.7 %
Stats SA CPI2 6.3%
Tariff Increase3 0.8%
Salary Increase4 7.7%
Tax Rate 28%
USD1 11.0
Euro1 13.8
• Bureau of Economic Research (July 2014).
• Stats SA (July 2014). Used to inflate the salaries cost;
• Final Permission. Used to increase the tariff;
• Salary Increase( Stats SA CPI+1)
SUMMARIZED FINANCIAL RESULTS
Description 2013/14 Actual
2014/15 Forecast
2015/16 Budget
Tariff Revenue 1 159 327 1 196 118 1 207 798
Other Revenue 133 365 133 387 138 228
Total Revenue 1 292 692 1 329 504 1 346 026
Total Expenditure 855 555 1 057 565 1 069 924
EBITDA 437 137 271 939 276 102
Profit before Tax 338 869 192 480 214 993
Profit after Tax 244 262 138 584 147 661
ROCE 23.6% 16.8% 10.9%
CONSOLIDATED BALANCE SHEET
Details 2013/14 Actual
2014/15 Forecast
2015/16 Budget
Total Assets 1 863 431 085 2 131 629 743 2 522 939 509
Total Liabilities 237 074 826 373 209 299 601 495 479
Total Equity 1 626 356 259 1 758 420 444 1 921 444 030
TARIFF INCREASES
Description
Actual 2013/14
Budget 2014/15
Projection 2015/16
Projection 2016/17
Projection 2017/18
Traffic Movement Growth
-1.9%
-2.4%
1.6%
1.8%
2.0%
Tariff Increase
5.5% 5.6% 0.8%
1.7%
6.3%
ROCE
DEBT EQUITY RATIO
CURRENT RATIO
INTEREST COVER
CAPEX
ATNS CAPITAL EXPENDITURE PLANS
Description 2015/16 2016/17 2017/18
Communications 122 002 073 59 560 366 53 491 801
Display Systems 86 029 953 38 185 061 21 699 915
General Items - - -
General: Buildings 8 981 950 3 903 714 4 113 734
General: Computer equipment 1 585 050 1 673 020 1 763 029
General: Elect&Mech equipment 6 868 550 7 249 755 2 938 381
General: Office furniture and fittings 1 162 370 1 226 882 1 292 888
General: test equipment 2 324 740 2 453 763 2 585 776
General: Tools 581 185 613 441 646 444
Navigation 47 491 792 18 775 570 34 319 869
Software 21 609 096 5 193 194 8 203 083
Surveillance 136 073 351 84 776 428 15 476 786
Total 434 710 109 223 611 194 146 531 705
Contact us
Thank you
ATNS HEAD OFFICE
Postal address
Private Bag X15
Kempton Park
1620
Street address
Block C, Eastgate Office Park
South Boulevard Road
Bruma 2198
Gauteng
Republic of South Africa
Contact details
Tel: +27 11 607 1000
Fax: +27 11 607 1570
Website: www.atns.com
Email: [email protected]