1 DEVELOPMENT BANK OF SOUTHERN DEVELOPMENT BANK OF SOUTHERN AFRICAAFRICA

2004 Annual Report Launch

MSV GANTSHOCEO AND Managing Director

“21 years old, 10 years of freedom and democracy..The tide has turned”

1 Development Impact

Approved development projects with a total monetary value of R87 billion, with a financial contribution by the DBSA of R32 billion

GDP = R17.7 Employment = 92 000 jobs Households impacted :4.03 mil

Cumulative approvals and disbursements 1994-2004

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10,000

15,000

20,000

25,000

30,000

35,000

93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02' 02/03' 03/04'

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cumulativeapprovals

Cumulative loandisbursements

1 Financial Sustainability

Credit ratings Fitch: AAA – domestic rating Moody’s: Baa2 – international rating Standard and Poor’s: BBB – international rating

Capital adequacy Debt/Equity ratio 105.9% Basle Accord minimum requirement is 8% the SA Reserve bank

is 10% DBSA is 50%

1Human Capital And Knowledge

Management

Most valuable asset

A key differentiator from commercial banks

Add value to financial strength

Ensures a people-focused development

1 Strong And Smart Partnerships

Vision 2004 : “ To be a leading change agent for socio-economic development in SADC”

DBSA is a partner of choice Financial co-operation Knowledge sharing Training Staff exchange

Managing 22 Agency programmes for Gov, DFIs, NGOs, Labour, Civil society

1 Strong And Smart Partnerships

70% of municipalities are clients

DBSA has financed projects in 10 countries other than South Africa - reaching out as far as Tanzania, Angola and Zambia

Funding relationships exist with 5 entities (NIB, AfDB, AfD, EIB, and KfW)

1 Municipal ICT

Multipurpose PPP project

Placement and training IT graduates in rural municipalities

40 Students already trained and placed country wide

1Thabachweu Municipality

Bourke’s Luck

Conversion of the Bourke’s Luck military base to a MPCC

Tourism and conservation spin-offs

Mobilised other players: R4 million

Development Fund contribution R500 100

1 Makana Municipality

Development Fund funding for development of strategic human Resource and performance management system

As a result the municipality was rated in the Top Ten Municipality by the VUNA municipal excellence awards

Development Fund contribution R191 250

1 CAPACITY BUILDING

Use of knowledge to build sustainable capacity To seek innovative solutions Vulindlela training academy

A nerve centre for e-learning To collaborate with training institutions and

institutions of higher education and learning

LGNet virtual private network connecting municipalities to the LGRC web based portal

Development fund recapitalised by R300mil R41 mill disbursed

1 CAPACITY BUILDING PROGRAMMES

Municipal ICT Graduate Internship Programme

Thabanchu Municipality (Bourke’s Luck Feasibility Study) Mpumalanga

Makana Municipality (Integrated Performance management system) Eastern Cape

1REDUCTION OF INFRASTRUCTURE

BACK LOCKS

Households with access to basic levels of services have increased

  1996 2001

Electricity 57.7% 70.4%

Water 79.8% 85.0%

Sanitation 82.5% 82.7%

Refuse 56.6% 59.0%

Telephones 75.2% 90.6%

DBSA is ready to re-double it’s contribution to the elimination of remaining backlogs

Vision 2014 is: A region free of poverty, inequity and dependency

1 DEVELOPMENT BANK OF SOUTHERN DEVELOPMENT BANK OF SOUTHERN AFRICAAFRICA

Annual Report Launch5 August 2004

ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2004

1 HIGHLIGHTS OF 2004

Full implementation of AC133 Comparatives not restated – impact on opening

accumulated surplus (R 402 million)

Revaluation of land and buildings Value of land unchanged on R 18,8 million Resulting increase in revaluation reserve on

building of R9,7 million

Change in basis of actuarial valuation of the Post Retirement Medical Benefit provision Increase in the liability of R 39 million

1 FINANCIAL PERFORMANCE

2003/04 2002/03 Movement

Gross interest income R 2,53bn R 2,28bn 11,0%

Operating income R 1,45bn R 1,65bn 12,1%

(excl. unrealised profits/losses) (R 1,53bn) (R 1,35bn) ( 13,3%)

Movement in impairments –

net write-back R69,9m R38,7m 80,6%

Operating expenses R 382,3m R 286,9m 33,3%

(as % of operating income) (26,4%) (17,4%)

Surplus from operations R 1,063bn R 1,364bn 22%

(excl. unrealised profits/losses) (R 1,147bn) (R 1,059bn) ( 8,3%)

Grant to Development Fund R 300m R 80m 275%

Surplus for the year R 763m R 1,28bn 40,4%

1

The financial results and financial position indicate

continued financial sustainability in the foreseeable future…

THANK YOUTHANK YOU