Annual report presentation

14 November 2007

The Balanced Scorecard perspective

Annual report presentation

04/24/23

A Balanced Scorecard provides us a framework that translates strategy into operational plans

DME Strategy

(Kaplan; Norton “The Balanced Scorecard”)

“To achieve our vision, how will we sustain our ability to change and improve?”

Obje

ctiv

esM

easu

res

Targ

ets

Initi

ativ

es

“To satisfy our shareholders and customers, what business processes must we excel at?”

Obje

ctiv

esM

easu

res

Targ

ets

Initi

ativ

esInternal Processes

Skills, Learning & Growth

“To achieve our vision, how should we appear to our stakeholders?”

Obje

ctiv

esM

easu

res

Targ

ets

Initi

ativ

esConsumer & Customer

“To succeed financially, how should we appear to our shareholders?”

Financial Performance

Obje

ctiv

esM

easu

res

Targ

ets

Initi

ativ

es

3

The balanced scorecard approach allows us to look at the business in totality

• As a public service organisation, we have arranged the perspectives of the Balanced Scorecard as follows– Customer

• fulfil our mandate (for the benefit of all)– Internal Processes

• Enable us to deliver– Learning and growth

• by having the necessary knowledge and tools available– Financial

• by securing funding and prioritising the use of financial resources

4

Department key focus areas

• Improve capacity to deliver on our mandate• Ensure security and quality of energy supply• Improve oversight over the industry

compliance to the mining and fuels charter• Implement the MPRDA, continue support to

SMMEs and promote women participation• Focus on youth development programmes

5

Strategic Objectives

Customer and Stakeholder

Internal Processes

Innovation and Learning

Financial

• Actively contribute to sustainable development

• Redress past imbalances

• Implement M&E policies and legislation

• Govern the sector to be healthier, cleaner and safer

• Implement capacity building initiatives

• Develop and retain staff

• Develop and implement appropriate structures, systems, etc

• Develop policies and procedures

• Transform the department

• Ensure effective financial management

DME strategic objectives

6

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

Actively contribute to sustainable development

Greater share of renewable energy

250 GWh 25 GWh 1.Subsidy schemes

2.Carbon tradingNumber of connections

• 215000 households

• 1000 schools• 50 clinics

electrified by year end

• 160920 households

• 926 schools• 23 clinics

Building of 13 bulk sub-stations

100% of the identified ownerless and derelict mines

• 13 ownerless and derelict mines

• 11 ownerless and derelict mines were rehabilitated

7

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

Redress past imbalances

Increased access to modern energy for low income households

• 10 IeCs

• 20 000 LPG connections

• 5 IeCs

• 10 000

• Establish IeCs• Facilitate LPG

roll-out plan

Access by % of qualifying beneficiaries

75% 71% Monitoring and evaluation of policies on FBE

04/24/23

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

Redress past imbalances

Assistance to SMME projects

100% of identified projects

Achieved Assisted 23 SMME projects

Increased number of HDSAs and women participants

5 women led companies

49 women led companies

Processing of applications

Increased number of HDSAs and women participants

25% new rights granted to HDSAs

58% of rights were granted to HDSAs

Processing of applications

Common understanding of the transformation agenda

Industry workshops

13 BEE and Social and Labour Plan workshops held

Held industry workshops on compliance issues

9

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

Implement minerals & energy policies and legislations

Uninterrupted supply of fuel

1.Strategic stocks policy report2.Strategic crude oil stocks in reserves

1.Strategic stocks report done

2.10.65 million barrels

1.Security of supply policy review

2.Maintain strategic oil reserves

10

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

To govern the minerals and energy sectors to be healthier, safer and cleaner.

Finalise and promulgate MHSA regulations

76 73 Tripartite process

Mine audits conducted

4418 2994 Audits

Mine inspection conducted

15984 11936 Inspections

11

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

To govern the minerals and energy sectors to be healthier, safer and cleaner.

Reduction in injuries

20% 0% Inspections and audit

Investigations completed

2675 2494 Investigation conducted

Inquiries Completed

215 165 Inquiries conducted

12

Customer and Stakeholder perspectiveObjective Measures Targets Actual

performanceInitiatives

Govern the sector to be healthier, cleaner and safer

1.Gas pipeline regulations

2. Petroleum Pipelines regulations

1. 30%

2. 30%

1. 30%

2. 20%

1. Develop and consult on regulations

1. NNR Regulations

1. RegulationsPublished

1. Safety Standards

2. Records keeping in an emergency

1. Developed and published Regulations

1. Implementation of Radwaste Policy

1. Formation of National Committee

1. National Committtee on Radwaste Formed

13

Internal processes perspective

Objective Measures Targets Actual performance

Initiatives

Appropriate structures, processes, systems and skills

Operational Petroleum Licensing Systems

100% 80% Design, procure and implement licensing system

Financial policies and procedures

70% completed 60% completed Outsourced the function

Improved turnaround time for processing applications

100% of decisions taken within the prescribed timeframes

70% of decisions taken within the prescribed time frames

Developed a master plan for processing of applications (Sept 2006)

14

Learning and growth perspective

Objective Measures Targets Actual performance

Initiatives

Appropriate structures, processes, systems and skills

Approved workplace skills plan

September 2006

1.Achieved

Report on outcomes and recommendations of the Vulindlela capacity assessment project

January 2007 Cabinet Lekgotla

1.Report presented on target and recommendations approved by Cabinet Lekgotla

1.DPSA and DME initiative

15

Financial perspectiveObjective Measures Targets Actual

performanceInitiatives

Ensure effective financial management

Collect all revenue due to the DME

R121million R191 million

Spend all available resources optimally

• R2.635 billion• Max two matters

of emphasis

• R2.608 billion• Unqualified audit

report