KHULA ANNUAL REPORT 2005 Xola Sithole Managing Director

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KHULA ANNUAL REPORT 2005Xola SitholeManaging
Director
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OUTLINE
Our Customers Our Business Our People Strategic
Direction Concluding Remarks
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OUR CUSTOMERS
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• In our drive to develop and empower small
  enterprises to become an integral part of the
  mainstream economy, we finance the marginalised
  and the rural based entrepreneurs

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• Our customers are business-minded people who
  possess the entrepreneurial spirit that is
  driving our economy forward

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• Our customer base is broad with disbursements
  benefiting

Although we have performed well, we now face the
challenge of improving these figures
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OUR BUSINESS
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• This year our net profit was down R34,1 million
  from last years figure of R54,7 million, coming
  in at R20,6 million

• This number is the result of
• drop in interest rates
• reduced money market balances
• a listed investment fair value loss of R13,8
  million
• property portfolio results in 2004 for 18 months

NET INCOME AFTER TAX
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• Our property portfolio still shows continued
  growth, 6 up from last years figure of R129,3
  million, with its current value sitting at
  R137,7 million
• We were able to maintain our strong capital base
  of R1,1 billion

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• In the past financial year we have been able to
  finance more people and more businesses, with
  our approval rate up 30.4 to R493, 7 million
  compared with R 378, 6 million in 2004

APPROVALS IN RMILLION
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• Disbursements went up by 15.4 with a total of
  R323 million invested in small businesses
  compared to R281 million the previous financial
  year

DISBUREMENTS IN RMILLION
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• Our net book growth has performed extremely well

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OUR PEOPLE
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• With a clear vision to be the finance partner
  of choice in SME development, our people are
  dedicated to providing a professional service
  that will aid in the continued development and
  success of the SME sector

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• In our commitment to drive development finance to
  SMEs we are committed to achieving the following

Acquisition and retention of required skills in
Khula
A comprehensive people development approach
An appropriate learning as well as sharing
culture and environment
An integrated performance management and reward
system
A healthy and conducive working environment
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STRATEGIC DIRECTION
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• In looking ahead, our focus will be on taking
  bold steps to ensure that all South Africans have
  a stake in national prosperity

Although we have shown tremendous growth in our
approvals and disbursements, our overall impact
is still limited
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• In the market segment that we serve, there are
  deeply entrenched market failures that call for
  more drastic support measures
• Our focus will be on start-up and expanding SMEs,
  giving special attention to BEE, women
  entrepreneurship, geographic spread and growth
  sectors

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• We will work closely with SEDA to make effective
  use of their service point infrastructure, in
  order to reach more entrepreneurs, more directly
• We will interact more closely with our channel
  partners to ensure better strategic alignment,
  focusing on the market failures we seek to
  alleviate

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CONCLUDING REMARKS
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THANK YOU